Exploring water scarcity issues in light of the growing crisis in global water management, this book examines the applicability of water markets. It provides an overview and understanding of the presence of water markets across the globe, analysing the ways in which different countries and regions are grappling with water scarcity.

This working paper presents the results of a comprehensive groundwater survey of Pakistan, designed to understand the dynamics of groundwater use, operation and maintenance patterns, socio-economics of groundwater irrigation, land use pattern, crops, yields, and groundwater irrigation practices. For this survey, Pakistan was divided into 83 nodal intervals, with each node covering an area of 100 km*100 km; and one village from center of each grid was selected as sample. From each sample village, 15 tubewell owners were randomly selected as respondents. In total, 1200 private tubewell owners were interviewed for this study. The distance between two sample villages was kept more than 40 kilometers. This was done to avoid influences of one-village activities on the other.

Markets for Water: Potential and Performance dispels many of the myths surrounding water markets and gives readers a comprehensive picture of the way that markets have developed in different parts of the world. It is possible, for example, for a water market to fail, and for the transaction costs in water markets to be excessive. Too often water trading is banned because the water resources have been developed with public funds and the water agencies do not want to lose control over water. There is also a concern that poor farmers or households will be disadvantaged by water trading. These concerns about public resources and the poor are not very different from those that have been voiced in the past about land sales. The problem is that in many cases the poor already have limited access to resources, but this limit is not due to water trading. In fact, water trading is likely to expand the access to water for many small-scale farmers. Markets for Water: Potential and Performance provides an analytical framework for water market establishment. It develops the necessary conditions for water markets and illustrates how they can improve both water management and economic efficiency. Finally, the book gives readers an up-to-date picture of what we have learned about water markets in a wide range of countries, from the US to Chile and India.

This book evaluates the history, the present and the future of water markets on 5 continents, beginning with the institutional underpinnings of water markets and factors influencing transaction costs. The book examines markets in seven countries and three different U.S. states, ranging from village-level water markets in Oman to basin wide formal water markets in Australia's Murray-Darling River basin. Introductory chapters on the background of water markets and on transaction costs and policy design are followed by chapter length discussion of water markets as an adaptive response to climate change and of supply reliability in a changing climate. Case studies describe a variety of facets of the design and function of markets around the world: California, Chile, Spain, Oman, Australia, Canada, India and China. In analyzing these real-world examples of markets, the contributors explore water rights and trading of rights between agricultural and urban sectors and the principles and function of option markets. They discuss different sized approaches, from large scale, ministry-level administration of markets to informal arrangements among farmers in the same village, or groups of villages which allocate water without large investment in management and infrastructure. Discussion includes questions of why water market practices have not expanded more rapidly in arid places. The book discusses mechanisms for resolving conflicts between water rights holders as well as between water right holders and third parties impacted by water trades and whether or not public ownership of water rights or use rights should trump private ownership and under what condition. Also covered are new and expanding categories of water use, beyond human consumption, agriculture and industry to new technologies ranging from extracting natural gas from shale to producing biofuels. The book concludes with suggestions for future water markets and offers a realistic picture of how they might change water use and distribution practices going forward.

Water sustenance and management are central development challenges facing Pakistan today. This report argues for dramatic changes in policy and approach to enable Pakistan to maintain and build new infrastructure, besides securing the water required for future generations. Focusing on two basic issuesthe countrys major water-related challenges, and ways of addressing themthe report calls for reinvigorated public water policies and institutions to sustain water development and management in the future by: Exploring the evolution of water management in Pakistan Describing past achievements and their relevance in the current context Analyzing existing challenges Suggesting ways of evolving a sustainable water management system The report draws heavily on a set of companion reports by Pakistan water experts and policy analysts. These reports are presented in the accompanying CD and provide in-depth analyses of: The interface between water and agriculture, energy, environment, growth, and poverty Drinking water, sanitation, drainage and salinity, flood, dams, groundwater, and water balance management Water-related rights and entitlements, reforms, and resources and institutions