This manuscript is the second IRP report on sustainable water management. The first report in the series provided a detailed account of how a decoupling policy can bemeasured. It introduced and discussed the analytical methods needed to ensure that water use can be properly quantified over the life cycle and integrated into other measures within the green economy.

This second report draws on the conceptual frameworks developed by IRP research and the existing literature, to provide a conceptual and analytical basis and compelling case for decoupling policy and decision-making in water resource management. The report explores innovative technological and policy instruments and opportunities to accelerate decoupling and achieve the environmental and economic benefits of increased water-use efficiency and productivity for both developing and developed countries. The possibilities and limitations of these tools and approaches are presented for agricultural, municipal and industrial sectors followed by larger scale system water level approaches, e.g., the river basin.