Málaga, a Mediterranean region, is increasingly prone to water-related risks, a situation compounded by the impacts of climate change. Urban development practices over the past decades have significantly exacerbated these risks. Our study offers a novel, scientifically derived methodology to evaluate municipal capabilities in managing hydrological risks through urban planning instruments. Leveraging a checklist applied through multicriteria analysis, we scrutinized the integration of theoretical and regulatory frameworks relating to hydrological risks in numerous municipalities. Our findings highlight a glaring deficiency in local Disaster Risk Reduction strategies in alignment with the Sendai Framework. Additionally, there’s minimal incorporation of natural risk analysis and mapping into planning instruments. Our results spotlight Málaga’s high institutional vulnerability due to its limited capacity in hydrological risk management, underlining the pressing necessity for land use policies informed by risk assessments and prioritizing citizen safety. This study significantly contributes to future urban planning initiatives, offering a roadmap toward more resilient communities amid escalating hydrological risks.