ALLOCATION OF WATER USE RIGHTS IN IRRIGATED AGRICULTURE: EXPERIENCE WITH DESIGNING INSTITUTIONS AND FACILITATING MARKET PROCESSES IN SOUTH AFRICA

摘要

Irrigated agriculture uses the biggest share of surface and underground water resources for food production in local and export markets. Given the competing demands from domestic and industrial uses, economic pressures exist to increase the efficient allocation and conservation of water. A political-economic analysis found that institutional change is required to establish correct incentives and effective market processes. This change was brought about by acceptance of a constitution and promulgation of a new national water act. In the democratic political order, everyone now has the constitutional right of access to sufficient water. The obligation rests on the government to take reasonable measures within available resources for progressive realization of these rights. This is done through water allocation reform and implementation of the national water resource strategy. It involves compulsory licensing of water use for irrigation to achieve an equitable initial apportionment of water use rights. Water conservation and demand management measures are further being implemented to increase the efficiency of water use and the re-allocation of water entitlements from lower to higher valued uses within or between different economic sectors. The legal framework has created conditions which enable market trades of water use rights. Substantial market transactions have been recorded, with most of these trades occurring in irrigation areas along the Orange River. Indications are that the market process provides opportunities for the more efficient use of water. Based on investigations of these transactions, institutional requirements are specified which will improve the performance of market transfers of water use rights.