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4 Assessing Water Transfers and Their Effects: An Introduction to the Case Studies
Pages 106-118

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From page 106...
... The characterization of third party effects will evolve as transfer activity increases. Still, it is the committee's belief that the evaluation strategy outlined here reflects the existing consensus on the range of physical and socioeconomic concerns that must be represented.
From page 107...
... ly to'look~ at the effects of Water Transfers These gui.delines..offer ir~si~ghts~:,to h~el'p'illumir~ate third pa'rty impacts.
From page 108...
... Transfer Characteristics Transfers can be voluntary or involuntary and involve a number of different state and federal procedures. Water transfers vary in type and impacts and do not necessarily always cause harm to third parties.
From page 109...
... In other cases, however, existing water rights are involved when water is moved. Both types of interbasin transfers may bring third party effects.
From page 110...
... Affected parties in this sector include ethnic communities that are especially dependent on the availability of water and particular ways of using water; Indians and tribal communities, many of whose water rights have been clearly determined; and residents of other special agricultural and rural communities who may value agricultural and rural lifestyles that could be jeopardized by water transfers.
From page 111...
... Nature of Third Party Effects Third party impacts can be divided into economic effects, environmental effects, and social effects. Economic effects include positive or negative contributions to the economic value of the region's or the nation's goods and services and adverse effects stemming from opportunities foregone because of the transfer of water.
From page 112...
... . The committee encouraged its guests to participate in frank discussions about the real and potential effects of water transfers on the people of their states and regions, with the goal of developing an accurate impres
From page 113...
... ASSESSING WATER TRANSFERS AND THEIR EFFECTS TABLE 4.1 Factors to Consider When Assessing Potential Water Transfers 113 Type of Transfer Change in ownership Change in point of diversion Change in use Change in systems operation Out-of-basin diversion Primary Process for Transfer Voluntary Involuntary Primary Market Forces for Transfer Government Local State Executive Legislative Judicial Federal Executive Legislative Judicial Affected Parties Rural communities Support services Erosion of tax base Loss of natural resource base Agriculture Remaining water users Reallocation of rights Ethnic communities and Indian tribes Ethnic communities Indian communities Agricultural maintenance and expansion Other Environment Instream flows Recreation uses Fish and wildlife Hydroelectric power Water quality Damages to water users Human health Ecosystem effects Ecosystem protection Endangered species Wetlands Riparian habitat Estuaries Urban interests Intrastate transfer constraints Tax-exempt status changes Federal taxpayers National economic concerns Windfall profits Other water rights holders Junior rights Senior rights Loss of flexibility Nature of Effects Economic (national/regional) Lost revenue Lost opportunities New revenue Environmental Instream/fish and wildlife Recreation Water quality Wetlands Social Rural communities Municipalities Other sion of the various scenarios.
From page 114...
... analyses of individual cases in order to develop a thorough understanding of the site-specific causes and consequences of water management actions and third party effects and (2) analyses of the entire body of case study information and other data sources to formulate and evaluate broad policy and programmatic recommendations addressed to the management of third party effects.
From page 115...
... Although an individual farmer might benefit from selling water rights to satisfy growing urban demand, rural counties are left trying to protect their tax bases, environments, cultures, and economic futures. The Arizona Ground Water Management Act, as one example of this dilemma, allows water to be transferred from agricultural areas to municipal and industrial uses but has no mechanisms for considering the interests and values of the areas where the water originates.
From page 116...
... Instream Uses One of the major issues facing decisionmakers is the balancing of consumptive and nonconsumptive, or instream, uses. Prior appropriation allows private rights to be created in public resources, and throughout the history of the West appropriative water rights were typically held by priorate parties or public water providers for consumptive uses.
From page 117...
... Some transaction costs are a necessary part of enacting any water transfer. These include costs incurred when the range of parties engaged in the transfer process is expanded to include third parties.
From page 118...
... However, transferring water is no simple matter; thus no simple and inexpensive process will be able to meet the needs of buyers, sellers, governing bodies, and affected third parties equitably. REFERENCES Water Resources Council.


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