This book evaluates the history, the present and the future of water markets on 5 continents, beginning with the institutional underpinnings of water markets and factors influencing transaction costs. The book examines markets in seven countries and three different U.S. states, ranging from village-level water markets in Oman to basin wide formal water markets in Australia's Murray-Darling River basin. Introductory chapters on the background of water markets and on transaction costs and policy design are followed by chapter length discussion of water markets as an adaptive response to climate change and of supply reliability in a changing climate. Case studies describe a variety of facets of the design and function of markets around the world: California, Chile, Spain, Oman, Australia, Canada, India and China. In analyzing these real-world examples of markets, the contributors explore water rights and trading of rights between agricultural and urban sectors and the principles and function of option markets. They discuss different sized approaches, from large scale, ministry-level administration of markets to informal arrangements among farmers in the same village, or groups of villages which allocate water without large investment in management and infrastructure. Discussion includes questions of why water market practices have not expanded more rapidly in arid places. The book discusses mechanisms for resolving conflicts between water rights holders as well as between water right holders and third parties impacted by water trades and whether or not public ownership of water rights or use rights should trump private ownership and under what condition. Also covered are new and expanding categories of water use, beyond human consumption, agriculture and industry to new technologies ranging from extracting natural gas from shale to producing biofuels. The book concludes with suggestions for future water markets and offers a realistic picture of how they might change water use and distribution practices going forward.

Markets for Water: Potential and Performance dispels many of the myths surrounding water markets and gives readers a comprehensive picture of the way that markets have developed in different parts of the world. It is possible, for example, for a water market to fail, and for the transaction costs in water markets to be excessive. Too often water trading is banned because the water resources have been developed with public funds and the water agencies do not want to lose control over water. There is also a concern that poor farmers or households will be disadvantaged by water trading. These concerns about public resources and the poor are not very different from those that have been voiced in the past about land sales. The problem is that in many cases the poor already have limited access to resources, but this limit is not due to water trading. In fact, water trading is likely to expand the access to water for many small-scale farmers. Markets for Water: Potential and Performance provides an analytical framework for water market establishment. It develops the necessary conditions for water markets and illustrates how they can improve both water management and economic efficiency. Finally, the book gives readers an up-to-date picture of what we have learned about water markets in a wide range of countries, from the US to Chile and India.

It is zero hour for a new US water policy! At a time when many countries are adopting new national approaches to water management, the United States still has no cohesive federal policy, and water-related authorities are dispersed across more than 30 agencies. Here, at last, is a vision for what we as a nation need to do to manage our most vital resource. In this book, leading thinkers at world-class water research institution the Pacific Institute present clear and readable analysis and recommendations for a new federal water policy to confront our national and global challenges at a critical time. What exactly is at stake? In the 21st century, pressures on water resources in the United States are growing and conflicts among water users are worsening. Communities continue to struggle to meet water quality standards and to ensure that safe drinking water is available for all. And new challenges are arising as climate change and extreme events worsen, new water quality threats materialize, and financial constraints grow. Yet the United States has not stepped up with adequate leadership to address these problems. The inability of national policymakers to safeguard our water makes the United States increasingly vulnerable to serious disruptions of something most of us take for granted: affordable, reliable, and safe water. This book provides an independent assessment of water issues and water management in the United States, addressing emerging and persistent water challenges from the perspectives of science, public policy, environmental justice, economics, and law. With fascinating case studies and first-person accounts of what helps and hinders good water management, this is a clear-eyed look at what we need for a 21st century U.S. water policy.

Tapping Water Markets is about the past, present, and future of water markets. It compares water markets with political water allocation, documents the growth of water markets, and explores the ways in which water markets can be improved and implemented further. This book provides up-to-date information of where and why water shortages are occurring and where and why water markets are evolving to resolve conflicting water uses. Though the main focus is on the United States, it includes examples from other parts of the world to show how water markets are beginning to thrive. It contains institutional detail that is accessible to people who are not economic or hydrologic experts, and comes alive with numerous examples and case studies of water markets. The book begins with an analysis of water institutions as they have varied over time and location. It then covers a range of discrete water management topics including surface water allocation, groundwater management, environmental flows, and water quality trading. The book concludes with predictions about the future of water scarcity and the ability of water markets to shape that future more positively.

Presents an analysis and recommendations for a new federal water policy from the Pacific Institute.

Exploring water scarcity issues in light of the growing crisis in global water management, this book examines the applicability of water markets. It provides an overview and understanding of the presence of water markets across the globe, analysing the ways in which different countries and regions are grappling with water scarcity.

Analyses the means for establishing and operating effective water markets. Proposes the application of economic instruments and the transfer of water management to the private sector as a means to guarantee acceptable water quality in the future in both developed and developing countries.