ABSTRACT
This part introduction presents an overview of the key concepts discussed in the subsequent chapters. The part describes an integrated water resources system as a mix of groundwater and surface water uses at the operational level. The operating level is controlled by institutional decision systems at the second level which, in turn, are the subject of policy level decision-making at the third and highest level. The part considers the hierarchy model at a time when other economists were trying unsuccessfully to substitute sophisticated econometric models for fundamental understanding. It describes the importance of understanding the physical and hydrological aspects of water resources as a prerequisite for studying economic issues. The part focuses on the relative importance of ground water, on the interrelationships between ground and surface water, and on the links between water quality and quantity.
