Tourism’s 65% share of Bali’s water use meets tougher 2026 rules

Denpasar — Bali’s tourism boom is placing growing strain on the island’s freshwater resources, with multiple recent reports estimating that tourism now consumes more than 65% of Bali’s water while new rules tighten permits and metering for commercial groundwater use in 2026.

Estimates repeated by researchers, NGOs and travel-sector observers put tourism’s share of Bali’s total water consumption at around 65%, concentrated in the south of the island where hotels, villas and restaurants are clustered. A 2024 policy study on Bali’s clean-water crisis concluded that rising demand is pushing the island toward a projected clean-water deficit by 2025, driven in part by tourism and population growth.

Bali’s visitor volumes have rebounded strongly since the pandemic. One travel analysis notes that Bali received nearly seven million international visitors in 2025 and more than 16 million arrivals when domestic travel is included, underscoring the scale of tourism-related demand. Those visitors share finite water resources with a resident population of about 4.4 million people.

Demand, development and groundwater

Bali’s water system depends on a mix of surface water, springs and groundwater. Lakes and rivers in the central highlands have historically supported irrigation and supplied villages, while aquifers beneath the southern coastal plain now serve areas where tourism and urban development are most concentrated.

Observers report visible signs of stress. Lake Buyan, one of Bali’s key freshwater lakes, has fallen by about 3.5 metres over recent decades, a decline cited by local researchers as an indicator of reduced storage. The same report notes that springs in some areas have experienced reduced flow or dried up, changing water access for nearby communities.

Urbanisation and tourism infrastructure intensify pressure on groundwater. When land is covered with roads, buildings and other hard surfaces, less rainwater can infiltrate into the ground to recharge aquifers, while pumping continues to supply pools, gardens, guest rooms and daily operations. A review of sustainable-event policies in Bali highlights that hotels in parts of South Bali consume up to 65% of local water resources, directly competing with agricultural and residential needs.

The consumption gap is particularly stark when comparing users. Analyses of Bali’s water crisis report that local residents typically use far less water per day than tourists, while luxury resorts and private villas can require thousands of litres daily per guest for pools, landscaped gardens, laundry and amenities. One local feature on Bali’s water crisis cites estimates of tourists using 2,000–4,000 litres of water per day, compared with 30–50 litres for a local resident.

Key indicators drawn from recent reporting include:

• More than 65%: tourism’s estimated share of Bali’s freshwater consumption.
• Nearly seven million: international visitors to Bali in 2025.
• More than 16 million: total arrivals in 2025, including domestic travel.
• About 4.4 million: Bali’s resident population.

What the 2026 framework changes

Indonesia’s updated groundwater regime distinguishes between business and non-business use. Under the Ministry of Energy and Mineral Resources regulation on groundwater, business activities—including tourism and commercial services—must hold a Groundwater Exploitation Permit (Surat Izin Pengusahaan Air Tanah, or SIPA) before using groundwater, while non-business daily needs below 100 cubic metres per month per household are exempt from permit requirements.

Legal and advisory guides for businesses in Bali explain that villas, hotels, restaurants and other enterprises drawing water from wells now fall squarely within the permit requirement if they use groundwater for pools, guest rooms, kitchens, laundry, staff facilities or landscaping. Permit applications run through Indonesia’s Online Single Submission system, and larger properties may need hydrogeological assessments and documented meter installation.

A transition period ending on 31 March 2026 has been set for regularising unlicensed commercial wells under national law. Advisory notices summarising the Geological Agency’s public message state that users should complete licensing corrections by that date, after which unlicensed commercial extraction can face administrative fines of up to IDR 50 million, sealing of pumps and potential criminal liability under water-resource legislation.

Business-focused guidance for Bali and Lombok similarly warns that existing wells must be registered, new wells require prior approval and non-compliant operators may face inspections and sanctions once the grace period ends. These materials emphasise that commercial users are expected to install volumetric meters and submit regular technical reports, with water taxes assessed against measured rather than estimated volumes.

For residents and farmers, the risks extend beyond household taps. Bali’s traditional subak irrigation institutions distribute water among rice farmers through temple-linked cooperative systems, but a 2024 policy analysis notes that increased upstream extraction and changing flows can reduce downstream canal supplies, forcing farmers to alter cropping patterns or consider selling land. The study concludes that while regional policies gesture toward water security and ecological justice, implementation has yet to secure long-term sustainability for Bali’s water resources.

Sources

• Unrush Travel – "Bali Is Running Dry: The Water Crisis Behind the Crowds"
• The Guardian – environment feature on Bali’s water and tourism
• Visa Indonesia – "Bali Groundwater Regulation in 2026"
• Synergy Pro – "Urgent Updates on Water Well Permit in Bali and Lombok in 2026"
• DOMA Bali – "Water at a Bali villa: well, PDAM and the SIPA permit 2026"
• VICE – "Bali's Tourism Is Sucking The Island Dry"
• Permen ESDM 14/2024 – Groundwater regulation (English rendering)
• Emerhub – "SIPA (Groundwater Permit) in Bali: A Guide for Businesses"
• KBLI.co.id – "Izin Pengusahaan Air Tanah"
• Bali This Week – "Bali's Water Crisis: How Tourism is 'Stealing' the Island's Lifeblood and Endangering Local Farmers"
• Lonely Planet – "A guide to navigating overtourism in Bali"
• Atlantis Press – "Clean Water Crisis in Bali: An Analysis of Regional Policy in Realizing"
• International Journal of Science Research – "Sustainable Event Policy Research Review in Bali: An Integrative"