Designing frameworks for water transfers

Pressures on water resources are rising. Globally, drivers for increasing water demands include changing weather and hydrologic conditions, as well as higher population growth rates. This means that more water is and will be needed to address domestic household needs, maintain habitable conditions for thousands of species that help keep many ecosystems healthy and produce nutritious food, fiber and fuel. Locally, the severity of water challenges and the ability to adapt to “the new normal” often depends on the effectiveness of water governance. Well-functioning water institutions are sometimes associated with only having tasks that impose strict limits on water use, like imposing strict quotas on water use. However, nonregulatory tools existing alongside the regulatory frameworks can help incentivize water conservation and help improve sustainable water management based on the value of water. Water transfers are one of the incentive-based water management mechanisms that can help adapt to changing local conditions and meet water use goals.

Water transfers have gained attention in the water management debate. In agriculture, water transfer mechanisms can provide the flexibility of moving water where and when it is needed most, which reduces risk to producers when crop water needs are challenged, like during droughts. To work well and avoid gambling with other water users’ needs and goals, water transfer mechanisms need to be carefully designed. Even though water transfers have been taking place globally for more than a thousand years, each scenario is unique in its complexities, making designing well-structured frameworks for water transfers difficult.

For the most part, stronger water governance is needed in the U.S. regions where agricultural production has been predominantly rainfed.

Recently, I’ve studied agricultural groundwater transfers in Nebraska. The regulatory structures permitting groundwater transfers to take place seem well-established, unique and highly variable across the state. These transfers have been active for multiple decades, giving local groundwater managing governments a chance to learn many lessons, including gaining a better understanding of how to ensure that the rules and regulations work for local water users.

There are many noteworthy details about agricultural groundwater transfers in Nebraska, but one aspect was particularly interesting to me. Many groundwater transfer frameworks are designed to help meet water needs in agricultural production while maintaining a focus on achieving various long-term conservation and environmental water management goals. This is done by carefully assessing whether the potential transfer could cause changes in local hydrology (e.g., expected groundwater levels and streamflow) and consumptive water use. To account for such potential negative impacts, some transfer rules may specify the direction or distance for groundwater transfers. In many cases, to ensure there is no depletion of streamflow, the groundwater transfer approval process may include mandating adjustments to the transfer size or rejecting the application altogether. These decisions are made case-by-case to account for local hydrologic complexity.

The best solutions to water sustainability concerns focus on untangling local hydrology issues and providing tools that work for local water users.

That is a challenging task that requires innovation and collaboration between private and public entities. In some cases, this means having tested regulatory frameworks capable of ensuring compliance with the local water management rules and regulations and, at the same time, providing flexibility in private decisions about water management. For water transfers to be an effective tool in sustainable water management, many complex aspects need to be considered when designing them. Thoughtfully designed water transfer mechanisms won’t address all the water resources concerns, but they can be one effective tool in a toolbox intended to help achieve water sustainability goals, even when these goals represent multiple water use interests.

Renata Rimšaitė, PhD, is a senior program manager for the Daugherty Water for Food Global Institute at the University of Nebraska. Views or opinions expressed in this column do not represent her employer.