The purpose of this paper is to describe the characteristics of the dual-purpose water buffalo production based on the Mexican production system as a model in tropical wetlands. It includes a broad literature review emphasizing the most recent and specialized publications examining key findings to improve our understanding in the performance of the buffalo species (Bubalus bubalis). The complementary topics addressed include reproductive management, parturition, the dam–calf bond, milking routines, and models of confinement and management, in addition to aspects related to milk commercialization. This article summarizes the advances made to date in this production system and its current margins for improvement. The development of dual-purpose water buffalo production systems in Mexico’s tropical wetlands is a relatively recent phenomenon that has progressed and improved due to herd management. Buffaloes are an interesting alternative for dual purpose systems that offer several advantages. The lower milk production of this species compared to cattle is its main limitation. However, the properties of their milk allow one to obtain an added value and make this type of farms competitive. In synthesis, consolidating buffalo production in Mexico’s tropical wetlands will require broadening our knowledge of this species, and perfecting the most appropriate handling procedures. The activities of government agencies and processing enterprises will play vital roles in achieving the integral modernization of this potentially important economic activity.