How Water Trading and Banking Can Support Groundwater Management
The Sustainable Groundwater Management Act mandates that local groundwater users bring their groundwater basins into balance by the 2040s, a process that will ultimately help individual users and their communities build resilience in an era of climate change.
As groundwater sustainability agencies and others face a future of pumping reductions and subsequent land fallowing, water banking and water trading may prove important tools to help manage this transition.
However, a combination of aging infrastructure and complex, conflicting regulatory structures currently hinders the expansion of banking and trading. Multiple actors can drive reforms to streamline these practices.