The Mexican companies in this study claim that they face a more regulated environment than U.S. companies in the use of water. Water usage is taxed at a higher rate than in the U.S., and is taxed twice: once when it is extracted from groundwater wells, and a second time either as the cost of treating the water to standards or the costs of reinjecting water to water quality standards. This double taxation results in very conservative water usage policies by Mexican Partners.