Yes. The first part of the clause refers to ensuring “that laws in relation to water services on First Nation lands, and policies and practices” are implemented.
This “meaningfully recognize” would refer to those laws and policies, so “meaningfully” in this case means that the government must essentially take steps to ensure those laws are adhered to, and it would be done within the spirit of the United Nations Declaration on the Rights of Indigenous Peoples. I think that would be the context of “meaningfully”.