Abstract

Water is centrally important for agricultural security, environment, people's livelihoods, and socio-economic development, particularly in the face of extreme climate changes. Due to water shortages in many cities, the conflicts between various stakeholders and sectors over water use and allocation are becoming more common and intense. Effective inclusive governance of water use is critical for relieving water use conflicts. In addition, reliable forecasting of the structure of water usage among different sectors is a basic need for effective water governance planning. Although a large number of studies have attempted to forecast water use, little is known about the forecasted structure and trends of water use in the future. This paper aims to develop a forecasting model for the structure of water usage based on compositional data. Compositional data analysis is an effective approach for investigating the internal structure of a system. A host of data transformation methods and forecasting models were adopted and compared in order to derive the best-performing model. According to mean absolute percent error for compositional data (CoMAPE), a hyperspherical-transformation-based vector autoregression model for compositional data (VAR-DRHT) is the best-performing model. The proportions of the agricultural, industrial, domestic and environmental water will be 6.11%, 5.01%, 37.48% and 51.4% by 2020. Several recommendations for water inclusive development are provided to give a better account for the optimization of the water use structure, alleviation of water shortages, and improving stake holders' wellbeing. Overall, although we focus on groundwater, this study presents a powerful framework broadly applicable to resource management.

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