The development of a market in groundwater usage rights can be inhibited by constraints arising from the institutional context. Such impediments may reduce the potential gains from trade and may generate high transaction costs for prospective traders. We analyse the regulations and policies...

Groundwater extraction can have varied and diffuse effects. Negative external effects may include costs imposed on other groundwater users and on surrounding ecosystems. Environmental damages are commonly not reflected in market transactions. Groundwater transfers have the potential to cause...

Perth, Western Australia (pop. 1.6m) derives 60% of its public water supply from the Gnangara groundwater system (GGS). Horticulture, domestic self-supply, and municipal parks are other major consumers of GGS groundwater. The system supports important wetlands and groundwater-dependent...