The paper reviews current experience with water quality trading programs and evaluates trading's potential as a future water quality management tool. The relative virtues of cap and trade (CAT) versus regulatory offset programs are discussed, as are administrative and technical barriers to...

Water quality trading programs envision regulated point sources meeting discharge control requirements and then being allowed to increase their nutrient discharge if they secure nutrient reduction credits from other pollutant sources in the watershed. Reduction credits can be created when...