Situation As the demand for existing water supplies continues to grow, increasing attention is being placed on transferring water rights through markets for urban uses. Transfers are proposed as an alternative to or component of traditional structural projects. Critical to the transfer process and evaluation of alternatives is knowledge about water right prices. Knowledge about water right prices is necessary to evaluate the economic benefits and costs of water transfers and to analyze other water management and development alternatives. However, little is known about the trends or determinants of water right prices. An understanding of water right market prices and factors that influence prices will benefit analysts and decision makers by providing them with information that can be used to evaluate the economic impacts and desirability of water right transfers and water marketing.
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