Water Mafia in Iran

Water Mafia (Persian: مافیای آب) is a term used to describe an informal, powerful, and corruption-laden network of government officials, contractors, and security institutions that control water resources in Iran to advance private and political interests.

This term has gained prominence in Iranian public and media discourse over the past two decades and is used to describe the unjust and destructive structures governing the country's water sector.

Environmental activists and political analysts argue that the water mafia exploits its political influence and access to state development budgets to implement large-scale, unsustainable projects such as dam construction, river diversion, and excessive groundwater extraction - actions that have led to the degradation of water resources, destruction of ecosystems, and the emergence of a widespread water crisis in Iran.

Origin and Evolution of the Term

The term "water mafia" was first coined by Iranian water experts and media to describe the corrupt, rent-seeking structure of water management in recent decades. In Iranian internal discourse, the term has been used for over a decade to refer to an unofficial but influential network of ministers, deputies, directors of state-owned construction companies, and advisors who exploit their positions in the water sector to advance massive projects for political and economic gain.

Although the network operates under the umbrella of formal institutions like the Supreme Water Council, it often bypasses legal oversight through systemic corruption and power-money linkages.

The term eventually entered international discourse. For instance, U.S. President Donald Trump referred to Iranian leaders as a "corrupt water mafia" who divert water to themselves, turning fertile lands into deserts, and named the IRGC as a central actor in unchecked dam building that has dried up rivers and lakes.

Mechanism of Operation

The water mafia comprises government officials, military commanders, construction contractors, and consulting companies who work together to push private interests through state-funded projects. At its core is the Iran Water and Power Resources Development Company (IWPC), which manages major dam and water transfer projects.

After the Iran-Iraq war, IWPC officials and the Ministry of Energy became key players in shaping national water policy, often initiating large-scale infrastructure without scientific review, environmental impact assessments, or public consultation.

Members of this network exploit legal loopholes to allocate construction licenses, drilling permits, and land use rights to themselves and their associates, sometimes through bribery and sometimes through political influence within decision-making structures.

Many projects begin without any environmental evaluation, and when public protests erupt, reports are produced retroactively.

Additional activities include allocating subsidized water to politically connected industries, issuing illegal well permits, and altering water rights regulations to benefit private ventures.

Members of the network enjoy de facto immunity, with judicial and security bodies often turning a blind eye to violations. As a result, the “water mafia” has been able to operate with minimal interference, generating vast profits at the expense of the environment and the nation’s water security.

The connection to the IRGC

The Islamic Revolutionary Guard Corps (IRGC) is one of the central actors within the water mafia.

After the Iran-Iraq war, Ali Khamenei ordered the establishment of Khatam al-Anbiya Construction Headquarters - a military engineering conglomerate under IRGC control. In 1992, the IRGC founded Sepasad, a specialized subsidiary for dam and tunnel construction. These firms quickly secured generous state budgets and executed major projects like the Gotvand and Karun-3 dams, despite heavy scientific and environmental criticism. Mahab Ghodss, a regime-aligned consulting firm, also collaborated closely with Sepasad, forming the core of the water mafia in the 1990s and 2000s.These entities secured massive budgets and distributed profits among contractors and political elites while suppressing oversight and public criticism. No one was held accountable for failures or damages, largely due to the IRGC’s security influence.The IRGC has thus emerged as a primary beneficiary and protector of water-related projects.

Environmental Consequences and Disasters

The actions of the water mafia have caused several major environmental crises in Iran:

Satellite imagery from 1984 to 2014 revealing Lake Urmia's diminishing surface area

• Lake Urmia Drying - Once the largest saltwater lake in the Middle East, Lake Urmia has significantly dried up due to the construction of over 40 dams on its feeder rivers. The lake bed has become a salt plain that generates dust storms, threatening agriculture, infrastructure, and public health.
• Zayanderud Drying - The river that once flowed through the heart of Isfahan is now dry most of the year. In the 2000s, much of its water was diverted to industrial projects in neighboring provinces like Yazd, often bypassing local needs. The result was a severe water crisis, with land subsidence under the riverbed endangering the city's historic bridges.
• Land Subsidence and Groundwater Depletion - Overextraction of groundwater, often illegally, has caused critical depletion of aquifers across Iran. Government reports indicate that over 500 of the country’s 609 plains are in critical condition. In regions like southern Tehran, subsidence has reached up to 31 cm per year—damaging infrastructure and buildings. This phenomenon, dubbed the “silent earthquake,” is a stark indicator of Iran’s deepening water crisis. Simultaneously, thousands of wells have dried, reducing rural agricultural capacity. Government efforts to mitigate the damage by transferring water from distant basins have sometimes worsened environmental harm in the source regions.

Connection to Iran’s Water Crisis

These local crises culminate in a nationwide water emergency. Demand for water continues to rise while renewable supplies shrink due to poor management and systemic corruption. While officials blame the crisis on drought and climate change, many experts and activists argue that its roots lie in mismanagement and entrenched corruption.

Si-o-se-pol in night while Zayanderud is dried

A policy of continuous investment in large-scale infrastructure - dams, pipelines, desalination - has favored mafia-linked entities while leaving behind ecological and social devastation. For instance, in provinces like Khuzestan and Chaharmahal and Bakhtiari, water transfers for industrial use have caused severe shortages for local communities.

See also

• Water scarcity in Iran
• Corruption in Iran