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Original article: Construir sobre el humedal: el conflicto inmobiliario que transformó a Los Molles

Local residents and environmental groups accuse years of real estate expansion on flood-prone areas of turning the Los Molles Wetland into a hotspot for legal disputes, flooding, and environmental complaints. 

Amid ongoing real estate development and urban growth across various regions of Chile, urban wetlands have become significant sources of socio-environmental conflict, sparking considerable debate in society, particularly with the recent presidency of José Kast. 

In recent years, communities, environmental organizations, and local authorities have reported that housing projects and land-use changes are encroaching on fragile ecosystems, leading to flooding, contamination, biodiversity loss, and the degradation of natural water sources.

Although the Urban Wetlands Law—promulgated in 2020—provided a new tool for environmental protection, many cases highlight the tensions between real estate development and ecological preservation.

In several municipalities, residents claim that urbanization progressed even before the ecosystems received official recognition, raising concerns about permits issued for development in flood-prone or ecologically significant areas.

One prominent case involves the Los Molles Wetland, located in La Ligua, north of Valparaíso Region, where residents and environmental organizations have long reported that real estate projects encroached upon wetland areas, resulting in recurrent flooding, environmental degradation, and threats to biodiversity. 

The dispute remains unresolved today, as residents assert that developers and authorities have allowed the intervention of a crucial ecosystem that helps absorb rainwater. In this regard, communities specifically point to land-use changes and construction in areas unsuitable for development. 

It’s important to note that the Los Molles Estuary lies at the mouth of the Los Coiles creek and represents an estuarine ecosystem where freshwater, marine, and terrestrial systems converge, supporting high biodiversity. 

Additionally, the area is home to species such as herons, coscoroba swans, huairavos, and pilpilenes, while also providing essential functions such as water regulation, flood control, wave mitigation, carbon capture, and natural water purification.

Residents of the area report that the wetland has been severely impacted by real estate activities, particularly due to two projects adjacent to its mouth at the beach shore. 

Bordemar Condominium: The Start of the Real Estate Conflict 

The first project named «Bordemar Condominium» from «Inmobiliaria Tres Pinos S.A. Molles 3» obtained building permits from theMunicipality of La Ligua’s Department of Works (DOM) in October 2015. Community members allege that during construction, the company filled portions of the Los Molles coastal wetland, a flood-prone area, to erect buildings. 

Over time, this intervention became evident following severe flooding caused by storm surges and frontal systems in 2020 and 2021.

Subsequently, the «Los Molles» neighborhood association and the organization Protect Los Molles filed a protective action with the Valparaíso Appeals Court in October 2015 against the building permit granted by the DOM, arguing that it was an illegal authorization violating constitutional rights concerning physical integrity and the right to live in an unpolluted environment.

However, the appeal was denied, and no further appeal was made to the Supreme Court, leading to the construction of the housing complex despite community objections. 

The Megaproject Facing Residents and Developers 

The second project affecting the community is the «Paseo Costanera» building by «RD Constructora SpA«, located on the coast and very close to the mouth of the estuarine wetland. This area was under dispute to be declared an urban wetland. 

The project included a 6-story building with 195 apartments approved by La Ligua’s DOM on January 22, 2019. Afterward, the developer conducted relevance consultations with SEIA in September 2021, who responded that an environmental assessment was not necessary.

Later, the «Los Molles Citizen Assembly» filed a protective action with the Appeals Court, which then ordered construction to cease on June 30, 2021, citing concerns about the sewer system’s capacity and risks to freshwater supply from the wetland.

Later, in 2022, the organization Protect Los Molles took further action, filing a criminal complaint for Illegal Association against officials who approved the building of the structures at the estuary’s mouth.

The criminal complaint was directed against developer Lilén S.A., which is promoting two new residential projects in a beach area adjacent to the estuarine wetland; along with the San Isidro water provider, responsible for supplying and managing the drinking water network in Los Molles, and various regional authorities. 

The conflict over the wetland escalated in February 2023, after the Second Environmental Tribunal annulled the declaration of Los Molles Urban Wetland issued by the Ministry of the Environment, ordering a new delimitation of the protected area. 

While the tribunal questioned the evaluation of evidence presented by residents and developers, it maintained the halt on construction within the contested polygon during the new process. Furthermore, it clarified that protection of the wetland does not prohibit real estate projects, but does require higher environmental standards due to the ecosystem’s fragility.

The complaint addressed the appropriation and damage to the Los Molles Beach and Estuary Wetland, alleging serious crimes by private parties, along with complicity and negligence by authorities and state agencies. 

Additionally, local communities reported concerns that the initiative would lead to housing overcapacity, jeopardize the supply of drinking water, and place developments in flood-prone areas.

In January 2025, the media reported that the «Paseo Costanera» project, valued at $19 million, was suspended after the Environmental Evaluation Service (SEA) deemed the developer’s study inadmissible, citing a lack of minimum information regarding its environmental impacts.

The conflict dates back to 2019 when residents reported filling and construction on the ecosystem for nearly 200 apartments. With the enactment of the Urban Wetlands Law in 2020, the community and municipality pushed for formal legal recognition of the wetland to halt real estate advances. 

However, the delimitation made by the Ministry of the Environment significantly reduced the area proposed by the municipality, leading to new judicial disputes and prompting the Environmental Tribunal to order a new delimitation.

The developer attempted to reverse the construction halt by appealing to the Supreme Court, but the nation’s highest court rejected the request. After exhausting national options, the company initiated actions in international courts. Meanwhile, environmental organizations like “Protect Los Molles” expressed their opposition to the judicial offensive, calling for the Inter-American Court to support communities and the protection of the ecosystem.

San Isidro Water Company Under Scrutiny 

One of the core issues in the conflict is the situation of the San Isidro Water Company, responsible for supplying drinking water and sewage services in the area, as the Superintendency of Sanitary Services initiated a process to revoke its concession after detecting repeated water outages and service deficiencies affecting over 1,300 clients. 

Furthermore, the company faced sanctions for performing unauthorized work and illegally extracting water from the wetland. An investigative commission of the Chamber of Deputies also uncovered noncompliance by the water provider and oversights by public agencies regarding reported environmental violations.

The Battle to Protect the Estuary 

This January, the Official Gazette announced the declaration of the Los Molles Urban Estuary Wetland in La Ligua, Valparaíso Region, granting protection to 10.6 hectares of this coastal ecosystem.

This measure marks a significant milestone for the area, as it represents the first protected urban wetland in the municipality, and it comes after years of conflicts between residents, authorities, and developers regarding the encroachment of housing projects on flood-prone and ecologically sensitive areas.

It is noteworthy that the wetland was initially recognized in 2021, but the resolution was annulled in 2023 by the Second Environmental Tribunal, which ordered the Ministry of the Environment to carry out new delineation, incorporating more technical evidence regarding hydrological connectivity and ecosystem sustainability. 

After new field studies, cartographic analyses, and reviews of data provided by diverse actors, the ministry issued a new resolution compliant with the Urban Wetlands Law.

The declaration also acknowledges the severe threats facing the wetland, including the construction of buildings over flood plains, interventions that altered the ecosystem’s natural regime resulting in recurrent flooding; alongside contamination from wastewater, hazardous waste, fertilizers, loss of native vegetation, habitat fragmentation, and the presence of invasive species.

Additionally, local communities warn that the tourism boom has not been accompanied by adequate infrastructure, leading to sewer issues, overflowing sewage, wetland contamination, and coastal erosion. 

In this context, residents and environmental groups stress the need to advance restoration projects and urban planning that balances tourism development with environmental protection of the territory.

La entrada Building on Wetlands: The Real Estate Conflict Transforming Los Molles se publicó primero en El Ciudadano.