Water allocation decision-making and management

Institutional arrangements for water allocation involve public, user-based and market allocation schemes. Critical to sustainable water allocation decision making are the varied interests of stakeholders and the consequences of alternative institutions as they relate to improving the livelihoods of the poor. At the heart of water allocation lies water rights, and shaping the incentives that people and organizations have to manage water. This ensures that water markets can respond to changing water demands while providing meaningful incentives for water demand management. These incentives play a major role in the equity, efficiency, and sustainability of water resources. To guide this process strong regulatory bodies are needed. This is most important when water prices are increased, either as an instrument of cost recovery or for demand management. As demand for water continues to grow and developed water resources reach capacity, there is increasing pressure to transfer water from agriculture—the major water user—to other water-using sectors, especially urban and industrial uses. At both the river basin and local level, decisions about water allocation require tradeoffs so that solutions about water allocation benefit all users. Particular efforts are made to ensure that stakeholders who are often overlooked, especially women and third parties affected by reallocation, are included in discussions and negotiations over water transfers.

Case Studies

South Africans gain access to drinking water Dwarsloop, South Africa | March 31, 2005 Today, as result of a USAID-funded project, water is flowing freely in Thulamahashe and Dwarsloop, and in other towns and villages in Bushbuckridge, an area in northeastern South Africa with some 140 communities and about 800,000 people. Learn more

Why wetlands sustain livelihoods and the environment

CH2M HILL delivers water to the West Bank

After the storm, relief

For every challenge, an opportunity

Delivering tangible results in Puerto Rico

Putting power in utility providers' hands in Egypt

Better management brings Indonesians more water

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