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Water transfers in California: 20 years of progress, view to the future

Date

2011-04

Authors

Macaulay, Steve, author
U.S. Committee on Irrigation and Drainage, publisher

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Abstract

Throughout the 1980's the California Legislature authored changes to California law that encouraged market-based water transfers as an alternative to development of new water supplies. At that time, and continuing to the present, projections in the California Water Plan were that many regions throughout the State would be short of water by 2020. The belief was that market reallocation of existing developed water supplies would reduce environmental impacts associated with water supplies and allow water to go to higher economic uses. Notwithstanding the new legislation, water supply conditions were not severe enough to trigger the need for water transfers until 1991, the fourth year of a prolonged drought. This paper provides a background on water in California, and a summary of the practice of market-based water transfers in California with an emphasis on short-term transfers (defined as one year or less). Transfers begin with the 1991 State Emergency Drought Water Bank and continue to the present. Historical data and several case studies are provided for illustration. The paper addresses the future direction of this important water management tool for providing increased water supply reliability for both agricultural and urban water users. This includes several examples of long-term market-based water transfers that are either underway or being contemplated.

Description

Presented at Emerging challenges and opportunities for irrigation managers: energy, efficiency and infrastructure: a USCID water management conference held on April 26-29, 2011 in Albuquerque, New Mexico.

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