Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market

Publication Date: July 2003

Publisher: Public Policy Institute of California

Author(s): Ellen Hanak

Research Area: Environment

Type: Report

Coverage: California

Abstract:

Although significant water trading has occurred in California since the drought of the early 1990s, many localities have restricted water transfers because of the perceived harm to other users and the local economy. In Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market, Ellen Hanak examines water transfers in California, local resistance to them, and various approaches to resolving water disputes. Drawing on a new database of water transfers as well as interviews with state, county, and water district officials, the report calls for water management at the local level that balances the interests of other residents and the potential gains from transfers.