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Abstract
With rapid growth in demand for water, the resource is increasingly being transferred from agriculture to cities and industries. This paper examines trends and expected future changes in sectoral water demand, which drive water transfers. It then describes alternative mechanisms for water reallocation, including administrative reallocation, market‐based reallocation, collective negotiation, and other means, including combinations of mechanisms, and illegal transfers. Transfer mechanisms and implications for rural livelihoods and the environment are illustrated for case studies in the western United States and Asia. The paper concludes with a series of suggestions for alternative policies and institutions for reallocation that could help reduce adverse consequences for the poor.
Acknowledgements
This paper draws upon previous research that the authors have undertaken with K. Palanisami, Rajendra Pradhan, Ajaya Dixit, Kusum Athukorala, and Mark Rosegrant. The case studies in India, Nepal, and Sri Lanka were supported by the Ford Foundation. We wish to thank our colleagues for their contributions and insights on this subject, and acknowledge the Ford Foundation for its support of this research. A previous version of this paper was prepared as background to the Human Development Report 2006. We thank Daniel Coppard for his insights.
