Barriers to water marketing: opinions of major pumpers on water marketing issues in the Edwards Aquifer region

Abstract

Groundwater use is a contentious issue in the Edwards Aquifer region of Texas. Many environmentalists are advocating groundwater law reform, much to the chagrin of property rights advocates. Establishment of tighter controls in the Edwards Aquifer region, which is imminent at this time, will have significant impacts on agriculture as well as municipalities and downstream users in the region.,.,This study provides us with a rare opportunity to study a changing resource management regime at an early phase. The spectrum of stakeholders in this issue is quite broad. Stakeholders may fit into any of the following categories: agricultural, municipal, recreational, and environmental interests. Despite the benefits of quantifying water rights and promoting water transfers to reallocate water more efficiently, there are certain externalities caused by this. Water transfers may cause "third-party impacts," or impacts on other individuals or interests not directly involved in the transaction. The purpose of the study was to identify the value placed on water in the Edwards Aquifer region, assess the extent of concern for third-party impacts in the region, and investigate whether or not these concerns might be a barrier to water marketing. These research questions were answered through the use of a telephone survey of major irrigators, municipal pumpers and industrial pumpers in Bexar, Comal and Hays counties. Results showed that there were not significantly different opinions on water marketing in general. Irrigators are more willing to sell water rights than municipalities or industries, and they are willing to supply relatively large amounts of water. Irrigators indicated a preference for transfers to other agricultural users. However, more than one-quarter of irrigators are against water marketing in general, and would not sell to anyone. Respondents indicated that markets should be free with regard to pricing, but some oversight should be instituted to protect third-party interests. Top water use priorities were sin-similar to those in the Texas Water Code.