The current issue of The Water Market Insider explores how the spot-market price of water observed across California responds to certain hydrologic, institutional, and management indicators. Prices are found to respond to water scarcity, which is driven by natural factors, policy decisions, and water management. Price transparency in California’s water market has increased significantly with the launch of the Nasdaq Veles California Water Index (NQH2O), a first of its kind index that provides a benchmark for the spot-market price of water rights transacted across the state.