United States: Western

Annotated Bibliography of Western Canadian Water Law

Bartlett, Richard. Transferability of Water Rights in Australia and the United States: Options and Recommendations, in Water Law in Western Australia: Comparative Studies and Options for Reform, (Perth: The Centre for Commercial and Resources Law, The University of Western Australia, 1997) 89.

In this essay the author compares the water transfer systems in both the United States and Australia. The author examines in depth the various types of rights and the ability of each right-holder in both the US and Australia to transfer that right. The essay includes a list of various statutory provisions relating to water transfer in the United States. The essay provides a generalized transfer process which outlines the various steps required to complete a water transfer in the US. The essay is successful in providing an in-depth comparison of the transferability of US and Australian water rights, and concludes with recommendations for an ideal, efficient transfer process.

Howe, Charles, “An Analytical Framework for Water Transfers”. Transferability of Water Entitlements: An International Seminar and Workshop, July 1990: Papers for Presentation. (Armidale: Centre for Water Policy Research, University of New England, NSW, Australia, 1990).

This paper considers the economic requirements of a water transfer system. Howe presents models to describe buyers (considering willingness to pay (WTP) based on reliability (seniority or right and ‘future of hydrology’) and quality), sellers (including water salvage), and intervening costs (transaction costs and physical transfer costs). Howe then combines the models to describe water markets. Finally, Howe identifies the characteristics desirable in water markets: flexibility, security of tenure, opportunity costs, predictability of outcomes, equitable or fair outcomes, and reflective of public values.

NC / NB

MacDonnell, Lawrence, “Water Transfers in the Western United States: Private Reallocation and Public Protection”. Transferability of Water Entitlements: An International Seminar and Workshop, July 1990: Papers for Presentation. (Armidale: Centre for Water Policy Research, University of New England, NSW, Australia, 1990).

MacDonnell begins this paper arguing that for practical purposes, the water in the western United States has been fully allocated through prior appropriation. After reviewing the history of water policy in the Western United States, MacDonnell discusses the recent era of reallocation. In particular the author reviews data regarding the number and size of water transfers in New Mexico, Colorado, Wyoming, Utah, Nebraska and Arizona from 1975-1984. The author then considers the review process in place in the different states. He compares the length of time needed for approval, the likelihood of approval, and the transaction costs need to complete the transfer. The cost of transfers in Colorado ranged from $0.37/acre-foot to $1702/acre-foot, with an average of $380/acre-foot. Finally, MacDonnell discusses current issues in water transfer policy, particularly, changes that could be made in existing laws and broadening considerations to take into account instream values, groundwater recharge and third party effects.

Michelsen, Ari and Robert Young, “Economics of Optioning Agricultural Water Rights for Urban Water Supplies During Drought”. Transferability of Water Entitlements: An International Seminar and Workshop, July 1990; Papers for Presentation. (Armidale: Centre for Water Policy Research, University of New England, NSW, Australia, 1990).

This paper provides an economic assessment of water supply option contracts (WSOCs). A WSOC is an option given by a holder of a water right (in this case a farmer) to sell water to a municipality in times of drought. The authors begin by identifying the essential elements for a WSOC and then develop a model to value such options. Fort Collins, Colorado is presented as a case study to examine the feasibility of WSOCs and the model developed to value the WSOCs.

Nunn, Susan, “Alternative Water Transfer Forums: Social and Community Impacts”. Transferability of Water Entitlements: An International Seminar and Workshop, July 1990; Papers for Presentation. (Armidale: Centre for Water Policy Research, University of New England, NSW, Australia, 1990).

This paper consists of an introduction to the social and community impacts of water transfers, a review of a survey conducted in New Mexico and Texas, and finally a discussion of forums in which water transfers may be affected. Full utilization of water resources, the increasing concern with a public interest in water, and the low marginal utility of irrigated water are all social issues of water transfers identified by Nunn. The survey was conducted in 12 communities in New Mexico, Arizona and Texas. The forums identified include market, administrative, judicial, legislative, and special-purpose district forums. The paper discusses how each particular market takes into consideration the social and community impacts of water.