Abstract:In the present era, permanent grasslands and other grazed habitats, i.e., moorlands and heath, are appreciated as avant la lettre green infrastructure (GI) resources, providing a wide range of ecosystem services, the delivery of many of which require water management to be in place. This paper discusses the role of water management and, in particular, that of drainage. We contend that controlled drainage and drainage-irrigation systems can contribute to the sustainable use of grasslands and associated habitats in the European Union. We present examples from a range of habitats in several EU Member States and attempt to identify the contemporary (short-term) costs as well as the short-term revenues covering these costs. Options for enhancing the role of the Green Infrastructure in Europe to achieve sustainable land use by including all "permanent grassland" are discussed.