Identification of the stakeholders is the first step in the participatory planning process. Equally important is the establishment of mechanisms for stakeholder participation, including defining how and when the various stakeholders will be involved in the decision-making process. The development and adoption of participation guidelines may be useful in this regard. Member States also need to empower all stakeholders to participate, particularly those from vulnerable groups. This may require the provision of financial resources (including transport and accommodation) to enable stakeholder participation. In addition, this also includes awareness raising, access to information, training and confidence building. 8.5.3. Policy: Watercourse States will negotiate on operating rules for dams on shared watercourses so as to optimise the socio-economic and environmental benefits in an equitable manner. The operational rules for a hydro system should be designed not just to optimise electricity generation or other uses, but also to allow for flood control and cater for other environmental matters. Dam operations should be undertaken on a basis that takes due cognisance of the impact of upstream actions on water users downstream. For example holding back water to maximise hydro-electric power generation can reduce water for irrigation downstream and thus reduce food production. Thus to maximise benefits in a shared watercourse, an integrated approach should be applied in the management of the shared water resource. 8.6 Affected Communities 8.6.1. Policy: Watercourse States shall promote the development and implementation of water infrastructure projects through a participatory process, especially of affected communities. The principle of consultation with and participation of stakeholders is one of the key IWRM principles. This principle is aimed at ensuring that those who will be affected by the proposed development have an opportunity to influence the outcome and safeguard their interests. Consultations will be carried out at basin or community levels through any appropriate channels and Member State Governments should facilitate such consultation. 8.6.2. Policy: Member States will put in place proper legislation to provide for equitable compensation of affected communities, so that they will not be worse off as a result of the project. IWRM seeks to maximise the economic and social benefits arising from any water resource development project. Furthermore, the Southern African Water Vision calls for social justice and economic benefits for present and future generations. These objectives need to be backed by appropriate legislation. - 42 -