October 8, 2026
Buyers who compare lots in Playas del Coco usually focus on the ocean view, the slope and the road access. The document that decides whether anything can be built there is a one-page letter confirming that water can reach the property. In Costa Rica the municipality will not issue a construction permit without a valid water availability letter. Without that permit, the plans cannot be registered with the CFIA, and no electricity meter can be installed. A Tico Times report from August 2026 put the stakes plainly: a lot with no water letter is, in practice, a lot you cannot build on, and it may be hard to resell to anyone who understands why.
The same report says roughly one in four development projects that request a water availability determination is now turned down, and that the head of AyA has said some zones can no longer support new letters at all. In Coco, three factors make that national trend matter more locally. The letter expires. A strong drought is forecast for the next several months. And the aquifer behind the town's water was the subject of a constitutional ruling within the last twenty years.
The letter matters so much because each later approval depends on the one before it. As the Tico Times describes the sequence:
If step one fails, the rest cannot go ahead. Two lots with similar views and the same asking price can therefore be very different assets. One may be ready to build on, while the other is waiting on a decision from a water system that has no obligation to say yes.
A positive water determination generally holds for about twelve months. If construction has not started in that time, the water board can require a new inspection, and conditions may have tightened since the original letter.
That expiry window matters more this year. In its October–December 2026 seasonal forecast, Costa Rica's Instituto Meteorológico Nacional projects an 80% rainfall deficit for the Pacífico Norte. It also expects the rainy season to end early and temperatures on the Pacific side to run 1.5 to 2 °C above normal. The IMN reported that sea surface temperatures in the Niño 3.4 region reached increases of close to 2.5 °C in August. That is above the readings from the 1997 and 2015 El Niño events. Reporting in June 2026 said the event is expected to affect the country until March 2027.
Put those timelines side by side. A letter issued in late 2025 comes up for review during this drought. A letter issued now could reach its twelve-month mark around October 2027, after a dry season that started early and an El Niño that may have just ended. Any buyer who plans to hold a lot for a year before starting construction is betting that the water picture will be the same when the letter is renewed.
Coco's municipal water comes from the Sardinal–El Coco–Ocotal aqueduct, which AyA built and the government inaugurated on March 1, 2019. It supplies 70 liters per second through a well field, pipelines, a pumping line and a 2,500-cubic-meter storage tank. It was built to serve about 34,000 people at a cost of ₡1,823 million. It took more than a decade to finish.
| Year | What happened |
|---|---|
| 2008 | Sardinal residents halted construction of a project in which business owners, organized as a trust, planned to draw 167 liters per second for tourism projects in El Coco and Ocotal |
| 2009 | The Sala IV declared the El Coco–Ocotal aqueduct unconstitutional, finding the community had not been consulted, legal permits had not been completed, and no technical studies guaranteed enough water |
| 2016 | AyA restarted the project with new studies |
| 2017 | Renewed confrontation between residents and police, with tear gas used and several people injured |
| 2018 | The government created a commission for integrated management of the Sardinal aquifers |
| 2019 | The government inaugurated the AyA-built Sardinal–El Coco–Ocotal aqueduct |
The figures in that table matter for anyone buying today. The system Coco runs on delivers 70 liters per second, less than half the 167 liters per second the original trust proposed to pump for tourism alone. At the 2019 inauguration, AyA's then-president Yamileth Astorga addressed two concerns raised during construction. One was that the water would run out because of the size of the pipeline. The other was that the water would go only to wealthy people and hotels. She said the aqueduct also served Sardinal households that had relied on hand-dug wells. Eunice Contreras, president of the Comité Pro Defensa del Agua de Sardinal, said that day she had not known about the inauguration.
New water demand in Coco therefore depends on more than how much the system can deliver. It also draws on an aquifer whose sharing between the town and the coast has already been decided in court and on the street. A water letter request here goes into a system with that history behind it.
In June 2026, Semanario Universidad reported findings from the Observatorio de Turismo y Migraciones de la Región Chorotega at UNA. In 2024, 22 ASADAs in Guanacaste lacked the technical capacity to approve new water connections because they did not have enough water. Seventeen of those community water systems were around four tourism districts. Sardinal, which includes Playas del Coco, was one of them. The others were Tamarindo, Tempate and Cabo Velas. The observatory found that these water-limited systems match the areas with the highest real estate and residential tourism growth on the Guanacaste coast over the past ten years.
That finding applies to the district as a whole and to the year 2024. The report does not name which individual system in Sardinal was affected. We found no current notice of a moratorium on new letters specifically in Playas del Coco. The finding still has practical value. The district has had areas where new connections could not be approved, so the answer can depend on exactly which system serves a particular lot.
Conditions have tightened since that snapshot. AyA has placed Carrillo on its El Niño watch list along with Liberia, La Cruz, Bagaces, Cañas, Nicoya and Santa Cruz. It has said tanker-truck delivery and controlled rationing may be needed in some communities. In May, CRHoy reported that the Municipalidad de Carrillo was monitoring Corralillos and La Guinea, communities without stable water access, and was considering reopening old wells used in earlier droughts. By September 24, 2026, 32 ASADAs across 11 cantons, including Carrillo, were rationing water, affecting about 6,525 services in 74 communities. That report does not name the Carrillo communities involved, and we found no reporting of rationing in Coco itself.
The long-term regional project, PAACUME, is designed to bring drinking water to more than half a million people in Guanacaste. It is not expected to begin operating before 2030.
Many buyers see a well on a property as a backup. Under Costa Rican law, groundwater is national property. A well used only for domestic purposes on the same property must be registered. Any development, condominium or rental operation needs a full concession from the Dirección de Agua at MINAE. Getting one takes several steps. A drilling permit is exploratory only. Hydrogeological and pumping-test studies follow. SENARA then issues its technical criteria and SETENA reviews environmental viability. Only after the concession is granted can water be legally extracted.
Operating a well without a concession can lead to fines, stop-work orders, sealing of the well and seizure of the works. A residential concession also does not cover a boutique hotel. For a Coco buyer who plans to rent the property, this matters. A property with a well is only covered for the use its concession allows.
These are based on the checklist the Tico Times recommends, applied to Coco's situation:
The Tico Times says it directly: if the answer to any of these is a shrug, treat that as the finding.
Does a house that already has water service need a letter? A letter is tied to construction permits. Buyers planning an expansion, a second unit or a rebuild should check what the supplying entity requires before counting on it.
Is there a current ban on new water letters in Playas del Coco? We found no current notice confirming one. Sardinal was among the districts with water-limited ASADAs in 2024, according to UNA observatory data reported in June 2026.
Can a buyer get a water letter renewed after it expires? The water board can require a new inspection once the roughly twelve-month window has passed, under whatever conditions apply at that point.
This post is general information, not legal advice. Water status and permit requirements should be confirmed with the supplying entity, the municipality and your attorney.
The lots worth pursuing in Coco this season are the ones whose water letter is current, whose issuer is known, and whose timeline fits before the letter expires. 2 Costa Rica Papagayo can confirm those details with you before you make an offer. Ask us to receive exclusive off-market listings, with the water documentation already checked.
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