The Use of Water Pricing as a Means for Enhancing Water Use Efficiency in Irrigation: Case Studies in Mexico and the United States

The role of water markets in enhancing irrigation water use efficiency is examined. Questions arise, however, concerning equity effects of water markets. A "middle ground" is discussed related to water rights transfers in the western U.S. where a "brokers" role for the BuRec is evolving. The result is a marketlike institution wherein gains in efficiency are achieved and third-party interests are protected. Mexico's concerns with equity implications of water transfers might easily be accommodated with this kind of institution.