ABSTRACT
This paper discusses the problem of allocating water between different uses, with particular reference to the impacts of low flows in rivers for the conservation of aquatic and riparian ecosystems. It considers the lack of effective markets for water in rivers and shallow aquifers, and the role of planning in resource allocation. It explores the importance of an institiutional approach to water resource allocation between competing demands. Key words: Conservation, economics, institutions, markets, rivers, wetlands, wildlife
Water must be one of the most complex of economic commodities. It has numerous direct out-of-stream uses but is also drawn from a complex of aquatic environments that themselves offer numerous services. Economic growth stimulates the demand for water in respects of perhaps all of these uses. But the water available is already very extensively utilised. In a number of catchments demand for water outstrips local supply, and a significant number of rivers suffer from low flows [1,2]. In this paper we outline some of the economic issues associated with water management. Our objective is to suggest an approach to the analysis of these issues, and potential directions for water management. Our aim is to widen the debate and suggest avenues for more detailed analysis, rather than to make specific policy proposals.
