As population is growing and urbanization is progressing, higher numbers of people are exposed to disaster risks, especially in developing countries. Climate change is further worsening impacts of existing risks and introducing new risks in the form of heat stress, water scarcity, water and vector borne diseases and extreme events. There is no doubt that countries need to investment more in disaster risk reduction (DRR) together with climate change adaptation (CCA) not only to minimize impacts but also build resilience. Sadly, investment in DRR and CCA is far behind compared with investments in expansion of human settlements, infrastructure and services development. This paper examines existing practices of investment and investigates challenges in increasing investments in reduction of water-related disaster risks. It concludes that in the first place, DRR needs to be integrated in national development plans. In addition, formulating sectoral long-term plans proved helpful to secure commitment of investment.