Chile’s Ceneca Prods. and Germany’s Niko Film are teaming to produce “The Memory of Water,” the next film from Matias Bize, whose festival impact includes three Sundance prizes in the past two years.

Written by Bize and regular co-scribe Julio Rojas (“In Bed,” “The Life of Fish”), “Water” turns on a young couple who try to rekindle their relationship after the death of their 4-year-old son.

“Water” was developed at the first Berlinale Residency. The shoot is skedded for November-December, said Ceneca producer Adrian Solar.

Multiple sales agents circled “Water” at Berlin.

Latin American films are building in budgets and scale. But this doesn’t just reflect increased state funding and growing national markets. With a few films under their belt, Latin America’s young helmers are naturally becoming more ambitious.

“This is my biggest challenge yet from any point of view: Production, cast numbers and, especially, its depth of sentiment,” Bize said. “Every film is more difficult because you want to go one better, go deeper into relationships.”

Bize is planning to recruit a multi-national cast. “Water” will use multiple locations and special effects, Solar said.

Bize’s “The Life of Fish” world preemed at 2010’s Venice Days and won an Ibero-American pic Goya.