The foundation of all environmental issues is land. Land disputes are a reoccurring theme with the Mapuche, who have never been fully compensated, nor restored by the Chilean government for the lands that were stolen from them. If the Chilean government cannot honor land, property and civil rights of its indigenous people; it cannot be expected to preserve the environment and equitably use its energy. When a nation, its government, and people lose its connection to the natural world and begin to accept the theft of land, forcible relocation of communities, pollution of rivers, erosion and depletion of soil, exploitation of trees, birds, animals, and mineral wealth without fully considering the environmental consequences and properly taking the time to first formulate policy and plans to achieve sustainable and peaceful development, the backlash from the earth and its people most closely tied thereto is inevitable. Ongoing water scarcity across Chile has complicated the nation's energy scenario causing the President and Energy Minister to carefully examine and evaluate the way forward, as they seek to creatively engineer solutions and access alternative energy sources. The Chilean government is forecasting the possibility of ongoing drought without its main source of energy, hydroelectric plants, being used to maximum capacity due to lack of rainfall. Water-generated energy which once accounted for 70 percent of total production in Chile is now less reliable. As fossil fuels fill the gap for hydroelectricity declines due to water shortages, contamination levels and CO2 emissions and air pollution will increase in Chilean cities adversely impacting public health. Long-term policy commitments are needed in Chile to protect the Mapuche, their lands and pursue new environmentally friendly and sustainable energy standards. By diversifying and relying upon different energy sources, employing fuel-flex automotive technology, and pursuing environmentally sustainable development Chile can potentially doubly its energy production capacity. A new energy distribution policy, system and guidelines are needed to serve the Chilean people, industry and sustainable development. By honoring and working with the Mapuche and environment, Chile can regain balance and social harmony. The future hope or fatal destruction of Chile is found in its relationship to its indigenous people and their ties to the land.