BENEFITS OF TRANSFERRING STREAMFLOW PRIORITY FROM AGRICULTURAL TO NON‐AGRICULTURAL USE1

Abstract

ABSTRACT: In Virginia, as in many states, priority to streamflow is held by riparian landowners who are predominantly agricultural users. The streamfiow may also have a high potential value to non‐agricultural users who do not have riparian rights. The potential benefits of transferring streamfiow priority rights from agricultural to non‐agricultural use were evaluated using simulation for an eastern Virginia watershed. Lowering irrigators' priority to streamflow reduced crop yields and irrigated returns in some years because of inadequate water supplies. However, the transfer of priorities increased the likelihood that the urban reservoir would be able to withdraw water from the stream without interruption. As a result, priority trades reduced the size of reservoir needed to meet a given water requirement by municipal users. The resulting savings in reservoir construction and maintenance costs more than offset the losses to irrigators. Net savings could be achieved even if the reservoir were required to release water periodically to maintain a minimum level of instream flow. The conclusion is that the state should encourage trading of access to streamflow in order to increase the use efficiency of streamfiows. Alternative means by which the state can facilitate water exchanges are discussed.