The aim of this article is to discuss the conflicts of jurisdiction between the different entities of the Brazilian Federation about water management, particularly since these were not determined by the resolutions of the 1988 Federal Constitution. Although the role of the different players involved was outlined in the Water Resources Law, it was only through the enactment of the Law on Basic Sanitation, updated in 2020, that the municipalities were given responsibility for the management of rainwater in Brazil. Rainwater management currently forms, or should form, a part of the municipal planning of basic sanitation and community involvement, together with transparency, is becoming a key principle underlying the new model of local governance. The adoption of sustainable techniques and non-conventional methods of water management, based on the concept of Low Impact Urban Design and Development (LIUDD), is serving as a model for the kind of rainwater management that can allow social control together with democratic participation and the decentralization of sanitation services.