Institutional Impediments To Efficient Water Allocation

B. Delworth Gardner

Review of Policy Research, 1985, vol. 5, issue 2, 353-363

Abstract: Current water institutions were developed for conditions of water penty rather than scarcity and are unable to allocate water resources efficiently under conditions such as those in the arid West. This paper reviews riparian, appropriation and correlative water law as well as existing admin‐ istrative rules governing water use in California and finds that all of these institutions violate norms of economic efficiency. The review suggests that decentralized water systems such as mutual irrigation companies with their appropriate laws are more flexible than centralized federal or state systems in promoting water movement to higher valued use. The paper concludes that institutional mechanisms which promote rather than inhibit water trades and transfers are more appropriate to arid areas and that these institutions will become increasingly popular as water becomes increasingly scarce.

Date: 1985
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