EcoLogic -- Water Markets: A New Tool for Securing Urban Water Supplies? (PDF)

City water planners are finding it increasingly difficult to secure additional water supplies in many water-short regions. Although overall water use in the United States has been relatively stable since the 1980s, urban water demands—driven by population growth and expanding economic production—continue to rise in many cities, outstripping gains in water use efficiency and other demand-management strategies. The ability to acquire new water supplies by purchasing permanent water rights or leasing water on a temporary basis is providing new options for city water planners in some parts of the world, including the western United States. By purchasing or leasing water rights, many cities have been able to avoid or postpone investments in more expensive or complicated water supply options such as long-distance water importation, water reuse, or desalination.