Warming Up to Water Markets

Water policy experts contend that the United States is heading toward a water scarcity crisis in the coming years. Global climate change is likely to make water scarcity much worse in the long run. This article argues that demands of current and projected water management challenges can best be met through a greater reliance on water markets. To facilitate this, water management must shift toward recognition of transferable rights in water that facilitate voluntary exchanges and the market pricing of water resources