Agricultural Water to Municipal Use

The Legal and Institutional Context for Voluntary Transactions in Arizona

Publication Summary

The development of water markets to facilitate the movement of water rights from agricultural to municipal and industrial use has been slower in Arizona than some expected. Researchers surveyed agricultural water supply organizations about their experiences with and attitude toward sales, leases and exchanges of water.  This article presents an analysis of survey results in the context of the institutional incentives for and barriers to voluntary water transfers in Arizona. A description of the current legal and institutional context for transactions in water is provided. Survey results suggest that the impact of these institutions on water transfers can be significant in either promoting or impeding transfers depending on the specific circumstances.

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