Upon adoption, the Draft Law on Water Resource Management will replace the current Water Law (which is in force since 1997) and will become the new framework document for water resource management. The Draft Law introduces a river basin management system and establishes economic instruments of water use. It also expands the water monitoring network and introduces pollution prevention measures. To support the establishment of the new framework of water resource management, developing secondary legislation is necessary. Moreover, there is a need for intense capacity-building activities, especially at the local level, considering the strengthened role of municipalities under the reform.