Jan van Schilfgaarde, USDA Agricultural Research Service and National Research Council Committee on Irrigation-Induced Water Quality Problems In 1982, a startling discovery was made. Many waterbirds in Kesterson National Wildlife Refuge were dying or suffering reproductive failure. Located in the San Joaquin Valley (Valley) of California, the Kesterson Reservoir (Kesterson) was used to store agricultural drainage water and it was soon determined that the probable cause of the damage to wildlife was high concen trations of selenium, derived from the water and water organisms in the reservoir. This discovery drastically changed numerous aspects of water management in California, and especially affected irrigated agriculture. In fact, the repercussions spilled over to much of the Western United States. For a century, water development for irrigation has been a religiously pursued means for economic development of the West. The primary objective of the Reclamation Act of 1902 was, purportedly, the development ofirrigation water to support family farms which, in turn, would enhance the regional economy (Worster, 1985).

Water is becoming an increasingly scarce commodity in many parts of the world. Population growth plus a growing appetite for larger quantities of cheap water quality as a result of urban, industrial, and agricultural pollution coupled with increasing environmental demands have further reduced usable suppliers. This book brings together thirty of the best economic articles addressing water scarcity issues within the US and Mexico. By touching on a number of different issues, this volume clearly articulates the need for improving existing institutional arrangements as well as for developing new arrangements to address growing water scarcity problems.

Nonpoint-source pollution (NPSP) poses a special challenge to society's ability to manage its collective environmental good - especially surface and groundwater quality. Since there is no `point', such as an outfall pipe, from which the pollution is being discharged and can be measured, pollution can reach the ambient environment without being monitored. Since management of air and water polution requires the definition and enforcement of limits on discharges or the imposition of fees on those discharges, inability to measure limits our ability to manage this environmental problem. This book presents a state-of-the-art review and discussion of economists' efforts to resolve this major problem and attempts to provide a way of working around it. The book sets forth the theoretical issues, modeling, and the actual programs set up to confront this issue.