GROUNDWATER MARKETS: A case study of the Fox Canyon Groundwater Market

The Nature Conservancy’s Sarah Heard goes through the mechanics of the market, the first to be formed since the passage of SGMA

A water market is much like a stock market for water​, but instead of ​trading stocks and bonds, sellers in water markets offer short- or long-term ​transfers of water.  Water ​trading can be an effective tool for water managers to provide flexibility in the allocation and use of water by moving water to where it is needed most, especially during times of drought. Water transfers can also help accommodate shifts in water demand over the long-term.  However, water markets must be carefully designed so they function effectively while avoiding adverse impacts to other water users or unreasonable impacts on the environment.

Sarah Heard is Director of Conservation Economics & Finance with the California chapter of The Nature Conservancy where she does market-based work on strategies to support the biodiversity of the lands, waters, and oceans by incorporating economic and financial tools.  At the Groundwater Resources Association’s Western Groundwater Congress, Ms. Heard gave this presentation on the Fox Canyon Groundwater Market, the first groundwater market since the passage of the Sustainable Groundwater Management Act.

Click here to read this article.