Most of the population discharges its used water in riverbeds, streams, or directly in the lake with no prior treatment. The quality of water in those bodies of water has noticeably deteriorated. According to statistics from the Food and Agriculture Organization of the United Nations (FAO), national water coverage of potable water was 63% in 2000. Total annual water withdrawals are approximately 248 m3 with 83% of extracted water being used and/or appropriated for agriculture. Non-revenue water losses are also high, whereby more than half of the water is lost due to leaks and broken pipes. Domestic water use is around 14% and the industry sector uses just over 2% of the water. The private sector began irrigating in 1950 in the lowland plains of the Pacific region of Nicaragua where banana and sugar cane plantations are prevalent. From 1980, the state sponsored irrigation development in favor of cooperatives and large organized groups of farmers. Subsidies were in place to cover the full cost of construction, purchasing of equipment, and operation and maintenance of irrigation systems. They introduced spray irrigation systems and by 1985, the area with installed irrigation infrastructure increased to 82,000 ha. In 1990, irrigated area reached a maximum of 93,000 ha; corresponding to 49,000 ha managed by the private sector and 44,000 ha by the public sector. The majority of irrigated surface area is located in the Pacific region (76%) and 24% in the central region. In 1990, the Government eliminated subsidies and liberated the price of energy. When combined with inefficient equipment, the cost of irrigating increased beyond the point at which farmers could maintain their systems. Consequently, systems were abandoned and then deteriorated. As a result, irrigated area decreased to just 23,000 ha using only surface water to irrigate traditional crops such as banana, sugarcane, and rice. Despite efforts, a government institution responsible for the activities of irrigation has not been established. There are no irrigation districts in the country either. A study was carried out in 1985 for the irrigation development in the Pacific region and suggested the creation of 14 irrigation districts; however, these suggestions were not implemented. The state does respond to requests from the private sector for investment into the irrigation sector by selecting projects of small and medium producers for financing through the Institute for Rural Development. Drainage problems are isolated in an area north of the Pacific region where issues of salinity of the soil exist; however, it is not believed there is a great risk to the land under irrigation here.