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Agricultural water conservation statutes are emerging in the West encouraging private irrigators to improve on-farm irrigation efficiency as a basinwide conservation measure. We investigate whether private improvements promote the economic efficiency and conservation of water use basinwide under a wide variety of hydroeconomic circumstances. The standard of efficiency is how an irrigation district manager should optimally invest in improving the irrigation efficiencies of individual farms located along a stream while internalizing intrabasin allocative externalities of these investments. The results indicate that the popular Oregon legislative model may be the least effective in conserving water and promoting economically efficient water allocation. 0 2000 Elsevier Science B.V. All rights reserved.

This paper analyzes the potential for using a market to shift water from irrigation to hydropower use in periods of low river flow in the Snake River basin of Idaho. The water could be used for irrigation in most years but in dry years would be very valuable for firming up electric power supplies. A model of crop growth and water use was utilized to estimate farmer responses and resulting farm income losses due to market-restricted irrigation water supplies. Results indicate that estimated hydropower benefits are ten times greater than estimated lost farm income, so the proposed water market should be economically feasible.

This article demonstrates how widespread technological changes in agriculture have weakened the security of traditional appropriative water rights. Since legal protection of these rights has severely restricted the use of transfer mechanisms to reallocate water to emerging social needs, this demonstration provides a powerful and novel argument for increasing the exibility of the prior appropriation system and operating it in conjunction with other legitimate water-allocation doctrines protecting public interests in water.

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