Although Mexico's legislature approved funding in December, President López Obrador said the project will not be built against the will of the majority of the local population.
Lower chamber lawmakers therefore consider it an obligation of power distributors to maintain electricity supplies to water plants 100% of the time using back-up supplies in case of failure.
The local government plans to install 100,000 rainwater collection systems to improve access to potable water.
Following damaging floods last week, Chaco detailed projects over US$40mn for which the governor is seeking federal funding.
Power service was lost in most of the country on Sunday, and even areas of neighboring Nicaragua and Costa Rica were affected.
The local government has almost double the budget of last year.
While governor Câmara discarded the privatization of water utility Compesa, he emphasized that PPPs and concessions are definitely possible in the sector.