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Although Mexico has acknowledged sustainable development as a policy framework, implying integration of the economic, social and environ-mental dimensions, this is not yet reflected in its planning. A review of the process to find alternative sources of drinking water for the metropolitan area of Guadalajara, which resulted in proposing a large dam, shows that the economic dimension is still dominant over the other two. Planning practices and administrative culture are yet to reflect the challenges of transparent, participatory and accountable planning. Mexico has an adequate policy discourse for such development, but needs to find ways to instrumentalise it. Strategic environmental assessment has great potential to account for the environment. To be effective in Mexico, it must ensure transparent and participatory processes, and be accompanied by initiatives to change the sectoral administrative culture towards environmental integration and public participation. [ABSTRACT FROM AUTHOR]