This study identifies a negative impact of mining on access to the public water system in Peru using district data from 2011 and a similar methodology as Loayza, Mier y Teran and Rigolini (2013). One potential explanation for this result can be found by assessing the effects of mining on the investment prioritization of local governments; responsible for providing basic services in Peru. A quantitative assessment of public investment data on a district level indicates that mining districts tend to have a lower propensity to invest in water and sanitation and a higher propensity to invest in infrastructure; a pattern which corresponds to the incentive scheme of the mining industry. By studying the potential indirect and direct channels of influence that the industry has over local governments, the study concludes that the presence of mining is affecting local governments to invest in areas which benefit the mining industry on the expense of adequate service delivery for its citizens.