Water Transfers: More Efficient Water Use Possible, If Problems Are
Addressed (Chapter Report, 05/23/94, GAO/RCED-94-35).

Debates over how water from western federal water projects should be
used have become more heated in recent years. Farmers use more than 80
percent of the western water withdrawn for use. Environmental problems,
such as selenium contamination and salinity, have been linked to
agricultural irrigation. Moreover, as urban populations, tourism, and
environmental awareness continue to grow, the demand for water increases
for cities, recreation, and fish and wildlife habitats. Building dams to
meet new demand is often not an option because of their high price tags
and harmful environmental effects. Advocated by resource economists and
others, water markets, in which rights to use water are bought and sold,
would allocate water to its highest economic use by allowing those who
place the highest economic value on it to buy it. This report examines
(1) the costs and benefits of water transfers; (2) how water markets
might be structured to address the impacts on parties outside of
transfers; (3) the legal, institutional, and other issues that would
need to be addressed to implement a federal water market; and (4) how
transfers of water from federal projects could be coordinated with state
law.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-94-35
     TITLE:  Water Transfers: More Efficient Water Use Possible, If 
             Problems Are Addressed
      DATE:  05/23/94
   SUBJECT:  Water resources development
             Water supply management
             Environmental law
             Environmental monitoring
             Environmental impact statements
             Water conservation
             Tanks (containers)
             Inland waterways
             Civil engineering
             Public works
IDENTIFIER:  Central Valley Project (CA)
             Arizona
             California
             Colorado
             Idaho
             Kansas
             Montana
             Nebraska
             Nevada
             New Mexico
             North Dakota
             Oklahoma
             Oregon
             South Dakota
             Texas
             Utah
             Washington
             Wyoming
             Colorado River Basin
             
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