Experiences of water transfer from the agricultural to the non-agricultural sector in Taiwan

Abstract

Two type of water transfer have occurred in Taiwan, namely, regular and emergency transfers. According to the prevailing Water Law, water is permitted to transfer among water rights holders whenever they need and agree upon relevant compensation. As for the emergency transfer, in the event of extensive drought, every water user sector will suffer serious water shortages resulting in unavoidable economic losses. The Government should step in to perform emergency water transfer by suspending agricultural water rights a course of action considered to cause smaller losses even when an entire rice crop is abandoned, to minimize overall losses to the national macro economy. This study has examined two typical water transfer cases that were implemented in Taiwan. The first one involved the regular transfer of agricultural water from the Changhwa and Yunlin Irrigation Associations (IAs) to the industrial user Formosa Petrochemical Corporation (FPC). The second one involved the transfer of agricultural water from the Taoyuan, Shimen and Shinchu IAs to domestic and industrial uses during the period from 2002 to 2006 as an emergency transfer. From the perspective of water transfer options, Taiwanese case studies have demonstrated that an officially recognized marketing oriented water transfer mechanism has yet to be established. However, water transfer is still undertaken whenever necessary. In this respect, regardless of the type of water transfer undertaken, water rights can only be suspended but not terminated. In spite of the types of water transfer, it is inevitable to affect the ecological and environmental functions. Therefore, further investigations with related topics should be broadly taken into account. Ecosystem services of paddy fields have attracted increasing recognition in the monsoon Asian countries. Currently, there is a research program collaborating with the International Water Management Institute (IWMI) on the impact and influence induced by water transfer with a major concern on the ecosystem services of paddy fields in Taiwan.