ABSTRACT
California, which has an uneven distribution of water across space1 and time, is usually regarded as a pioneer in environmental regulation and, also, in water law issues. It was the first US State to recognize that some water rights could be transferred independently of land in early twentieth century.2 As this chapter illustrates, water markets discussions kicked off in the early 1970s in the scholarly debates as well as in policy discussions at the State and federal levels. Water market legislation was introduced with the aim of increasing efficiency in water use. Such a goal could be in tension with public property over water and the pursuit of public interest.3
