Water is a scarce and contentious resource in California. Its allocation frequently breeds conflicts over endangered species, land use, and public health. Unfortunately, the state’s water laws and bureaucracies often encourage fighting between competing water users. Water markets offer a way to resolve such conflicts without harming the environment or infringing on the rights of others. As the Cadiz Valley Water Conservation, Recovery, and Storage Project demonstrates, water markets also motivate entrepreneurs to develop new water sources and deliver the scarce resource to the places that need it most.
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