This paper discusses the process of “accumulation by dispossession” of water resources by the institutions of the transnational state and the role of nationalism in the resulting movement for reappropriation. A comparative analysis of Latin American countries is conducted using data obtained from UN databases and historical accounts. The object of this analysis is to delineate a causal pathway surrounding the dynamics of water sovereignty in the age of global capitalism. I find that privatization is not likely to occur if there is a lack of crisis or there is a socialist executive; however, if privatization does occur, and the appropriating action is taken by a multinational corporation, activated nationalist sentiment may lead to reappropriation of water resources.