Uruguay President Luis Lacalle Pou declared a state of emergency in the capital Montevideo because of a water shortage, enacting measures such as tax exemptions for bottled water and the construction of a reservoir.

The South American country is experiencing its worst drought in 74 years, which has drained Montevideo's main reservoir. Reports of shortages first began in early May.

The construction of the water system will start on Tuesday and will take 30 days at most, the president said in a press conference late on Monday.

Water supply is guaranteed in hospitals, residential homes, child and family care centers, according to the president.

The government also said it would deliver two liters of free water per day to some 21,000 beneficiaries of a program.