Abstract
The West is experiencing rapid population growth that is straining already limited water resources. As an example, the population in Colorado's South Platte River Basin is expected to increase by 65% (two million residents) during the next twenty-five years. New residents will require more than 400,000 acre-feet of water annually, but water supplies within the basin are fully appropriated. Increasing demands and limited alternatives suggest a water reallocation from agricultural to municipal use (Colorado Water Conservation Board). Water reallocation inspires contentious debate. Both public and private sectors invested heavily in irrigated agriculture rationalizing their effort based on collective well-being. Yet, current water right transfers are almost entirely market driven between willing buyers and sellers. While buyer and seller presumably benefit from the transaction, stakeholders believe that rural economies are at risk.
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