Recent Tendencies in Relation to Valuation of Water Rights

Abstract

It happens that twenty-five years ago two publications appeared dealing with the valuation of riparian rights and the determination of diversion damages. The first paper, which was by the present author,1 dealt with engineering practice in water power valuation as of that date. The second publication referred to was the report of the Committee of the New England Water Works Association on Data Relating to Awards for Water and Water Power Diversion.2 It contained data regarding prices paid and awards made in the acquisition of riparian rights and diversion damages for water supply purposes in over two hundred cases, representative of conditions throughout a period of about thirty years prior to the date of the report. The present paper is mainly devoted to a consideration of engineering and economic changes in water power practice during the subsequent quarter of a century in relation to their effect on water power valuation and the cost of acquisition of diversion rights. The general principles and practice of water rights valuation were set forth in the author's preceding paper above referred to and will not be repeated except insofar as necessary to make the present paper reasonably self-contained and to provide a background for discussion of the effect of changes in conditions in the subsequent period.