Abstract
As most cities share their water basins with rural areas, an efficient and environmentally sensible urban water management system needs to consider the interplay between urban and rural water uses. This article analyses the three main challenges at this interface: increased competition for water resources (scarcity); flood management (abundance); and freshwater quality conservation (pollution). The merit of potential policy options is discussed from an economics perspective, taking examples from successful experiences in cities around the world. The benefits and challenges arising from enhanced coordination and integration between urban and rural water management are highlighted.
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