WATER ALLOCATION

1. WATER ALLOCATION Allocation of the Right to Make Beneficial Use of Public Water By Marvin S. Cohen .

2. FIRST-COME-FIRST-SERVED(Use It or Lose It) • The West—prior appropriation doctrine— beneficial use of scarce water resources. • Arizona, doctrine applies only to surface waters. • Property right in the beneficial use of the water. • The right can be lost by non-use. • Water right can be severed and transferred from appurtenant land. • Must have approval of Director of ADWR.

3. INTERSTATE ALLOCATION • Interstate stream allocation among states: • Compact, • Congress or • U.S. Supreme Court—equitable apportionment. • Prior Appropriation Doctrine need not apply. • Early 1900’s Colorado River States worried that California would appropriate all of that River’s water. • Compact permanently divided the River’s water by agreement between the Upper Basin and Lower Basin. • Lower Basin water then permanently apportioned among the Lower Basin States by Congress without regard to who first put the water to beneficial use.

4. GROUNDWATERThe Regulated Riparian Approach • Landowner can make reasonable use of the groundwater extracted from his land. • But State can regulate the withdrawal and use of that water. • In AMAs, groundwater withdrawals and use tightly regulated (except for exempt wells.) • For AWS, first-come-first-served. • In non-AMA’s loose regulation. • Interbasin transfers highly restricted.

5. COMMAND & CONTROL • Allocation of Colorado River water. • Secretary of the Interior can decide who will receive Colorado River water and how much water each will receive. • CAP water—The Director of ADWR recommends—the Secretary allocates. • Transfers of CAP allocations must be approved by U.S. and CAWCD. • CAWCD consults with ADWR on the water policy implications of each requested transfer. • CAP allocations not lost for non-use.

6. CAGRD—MODIFIED FIRST- COME-FIRST-SERVED • CAGRD membership—open to developers & water providers in CAWCD’s three counties that can show a 100-year physical supply of groundwater. • Groundwater physical supply “locked up” on a first-come-first-served basis • A plan of operation every ten years . • If plan of operation not approved, no new member lands or member service areas. • If this happens, those who got in first get access to the replenishment water • CAGRD is responsible for finding the replenishment water.

7. MARKET ALLOCATION • Water farms: • Tucson—Avra Valley 1970s. • Phoenix—McMullen Valley. • Scottsdale—Planet Ranch. • Mesa—Pinal County farmland. • Indian CAP water leases. • CAGRD potential acquisition of additional water under new plan of operation. • Storage credits, extinguishment credits. • Type 2 rights.

8. FUTURE ALLOCATIONS • Excess CAP aqueduct capacity—command or market? • 90,000± af of NIA CAP to be allocated by command—Director of ADWR. • Water transfers—regulated market? • Colorado River water. • Present Perfected Rights. • On River Indian water. • On River agricultural contracts. • Indian CAP leases. • CAP non-Indian allocations transferable but not marketable. • Other surface water. • Groundwater. • Effluent. • If new rural water districts are formed as result of SWAG: • How will the districts acquire water? • How will a district’s water supplies be allocated among members?

9. HOW WOULD I DO IT? • Markets are generally the most efficient way to allocate scarce resources. • In the U.S we have built successful market economy by: • regulating for health, safety and public policy and • allowing the market to function within those constraints. • We need such a market system for water use allocation.