SPOT WATER MARKET AIDES CALIFORNIANS DURING SEVERE DROUGHT

摘要

In an unusual move to address drought conditions, California's Gov. Schwarzenegger announced in July a State of Emergency for nine Central Valley counties. The State of Emergency allowed for the exchange of 62,500 acre-feet of State Water Project (SWP) supplies and the movement of 50,000 acre-feet of non-SWP ground water through SWP facilities to reach drought-stricken farmers. The announcement followed the U.S. Bureau of Reclamation's reduction of Central Valley Project (CVP) water supplies to 40% for agricultural water users. Although the exchange did not require any payment for the water, the move signified the growing need for drought-year water transfers throughout the state. Many water users rely on the spot water market to provide short-term relief during dry years. The spot market allows water right holders to lease all or a portion of their water on an annual basis. Generally, the water comes from agricultural water users north of the Sacramento-San Joaquin Delta who either have a water surplus or have determined that leasing water is more profitable than farming. The market provides an alternative to state-facilitated water transfers.