Water Markets, Regulation and Technology: A Survey of Irrigators in Washington State

Abstract

Water markets hold potential for helping communities in the western United States adapt to water scarcity, but market activity remains low. Reforms to policies and institutions could spur more market activity but could also be politically infeasible if water users opposed them. Improving complementary tools like seasonal forecasts and consumptive use monitoring can help only if the tools are used. We surveyed 248 water users in four sub-basins of the Columbia River in Washington State to measure (a) their existing knowledge of and participation in water markets, (b) their demand for hypothetical future policy changes and (c) their use of these complementary tools. Only half of water rights holders were familiar with the concept of water markets, though participation was relatively high among those who were. Three quarters reported ‘difficulty’ knowing what a fair price for their water right would be, and a majority voted in favor of a hypothetical policy to mandate disclosure of water market transaction prices. A large majority supported repealing relinquishment (i.e., ‘use-it-or-lose-it’) rules. A majority of irrigation district growers said they would advise their Boards of Directors to vote for a 1 year program to lease water out of the district, but to vote against a 5 year ‘dry-year option’ program. Only one-third used long-range (1–7 months) forecasts of precipitation, snowpack, temperature or water availability, and less than a quarter measure their consumptive use.