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Water Allocation

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The increasing demand for water and the general notion that water is becoming scarce have resulted in a competition among the water users. One of the most serious issues of water management is the question how to allocate the water resources to guarantee sufficient amount of water for all demands. The balance has to be found between the requirements of the local consumers, the needs for regional development, and the principles of environmental sustainability. For a better understanding, conflicts can be categorized as i) upstream versus downstream users, ii) sector versus sector, iii) human versus nature. In reality, however, often the circumstances are more complex. That is why, it can be expected that allocation management will gain further importance in the future. It is not exaggerated to declare that “the issue of allocation overshadows all other aspects of water management” (Lee 1999, p.50).

A comprehensive management approach is essential to establish and apply efficient allocation policies. Their goal is not restricted only to solve conflicts among competing uses and users, but it is to improve the overall management of the water source, accounting for the social, economic and environmental value of water. Furthermore, as the allocation policies concern the users directly, they promote the participation of communities and the private sector in the decision-making.

Generally, water allocation is an administrative and legal matter, and it is organized by a centralized institutional body. An efficient institutional structure is required to carry out the various tasks of river basin management, e.g. policy formulation, operational rules, implementation control, etc. The tasks should be well defined, and made transparent for the public (Jain & Singh 2003).

Allocation rules are the institutional solution to relate available water supplies to individual user’s permitted diversions and consumption.

Water Rights

The water users divert and use water according to specified water rights. If the government is the owner of the water, i.e. water is seen as the property of a whole community, the use rights are granted by a recognized water management authority by means of permits, concessions, etc. In many places local communities of users have their own bodies to manage water use. Unauthorized water users are not allowed to participate in the water allocation.  The private ownership rights are limited so as not to interfere with other users’ rights. 

If water rights are determined and allocated properly, the level of water use will gradually reach an optimal level. The socially optimal level of resource use must be first determined and then divided into appropriate rights, so the total use stays within limits. When the rights are first introduced, they have to take into account the historical pattern of appropriation, so as to avoid radical changes and worse off users (Jain & Singh 2003, p. 794).

The allocation management framework is elaborated to take into consideration the cumulative effects of water use and to guarantee that the water allocation is equitable for the users. The principle of equity implies that water should be available to all who would need it. Accessibility of the resource should be maximized, however the increasing demand reduces the reliability of supply. Allocation limits are set to ensure that water is allocated to users in quantities that are reasonable for the intended uses. The aim is to achieve an acceptable balance between accessibility and reliability of supply, and to provide a basis to share the water source as equitably and efficiently as possible.

Minimum flows and levels for rivers and reservoirs are defined to protect the environmental values. In case the minimum levels are reached, water diversion by the users is restricted.

The allocation plan should be consistent with any higher level policy within which the allocation plan is implemented. Also, the allocation rules should be compatible with the local conditions.
When all uses of water cannot be supported to the fullest extent, a management policy has to be developed to prioritize the water rights of the users.

Priority allocation is one of the universal methods used in practice to allocate water supplies. By the rule of priority allocation, the water rights are defined in terms of two parameters: quantity and priority. Priorities are determined following established criteria, for example time of use, type of use, or location. The user with the highest priority receives its entire demand (if available) before the second user is considered, and so on. The highest priority could be allocated to the instream flow requirements, i.e. to ensure that a minimum flow requirement is observed by all water users.

The proportional allocation system defines water rights as a fraction of the available flow in the stream, or of the water available in a reservoir. Then, all water rights holders have equal priority sharing available water according to the proportion of rights held (Lee 1999, p. 75).

Priority Water Rights

According to Lee (1999), the priority rights system has the following advantageous aspects. It is efficient in cases where various water users have various demands for water. The risk-sensitive water users can apply for and acquire more senior rights, so in the end all users can achieve their desired level of security and hold rights equal to the average amount of water needed. The priority system provides a high certainty of possessing the water rights, because the concept of seniority protects the privileges of existing users. It guarantees that new claimants for water rights will not reduce the available water for the existing users.

The table below lists some examples of water use priorities defined in the national legislation of four countries.

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Source: ADB 2009. Water Rights and Water Allocation Issues and Challenges for Asia:

Benefit Sharing: An Alternative for Water Allocation in the International Context

Nations sharing transboundary waters encounter many challenges when dealing with water allocation, not least because property rights are often unclear and contested. ‘Benefit sharing’ has been proposed as one approach to bypass the contentious issue of property rights. The idea is that if the focus is switched from physical volumes of water to the various values derived from water use – in multiple spheres, including economic, social, political, and environmental – riparians will correctly view the problem as one of positive-sum outcomes associated with optimising benefits rather than the zero-sum outcomes associated with dividing water. 

In other words, sharing the water turns out to be a zero-sum game), while sharing the benefits from the water is a potential positive-sum game.

Benefits range from the more tangible and direct (benefits to and from water) to the intangible and indirect (reducing problems/costs because of water and increasing benefits beyond water). Similarly, the tangible and direct benefits come from supporting and provisioning services; whereas the cultural services along with social relations and security are less tangible and direct. Considering such a range of benefits helps to develop a better understanding of the diverse benefits generated from water, to thereby present compelling, equitable and efficient water benefits sharing schemes. 

For more information see: Cooperation on International Rivers. A Continuum for Securing and Sharing Benefits

References

Asian Development Bank. 2009. Water rights and water allocation: issues and challenges for Asia. Mandaluyong City, Philippines: Asian Development Bank

Jain, S. K.; Singh, V.P. (2003): Water Resources Systems Planning and Management. Elsevier, The Netherlands

Lee, T.R. (1999): Water Management in the 21st Century. The Allocation Imperative. Edward Elgar Publishing Ltd, UK

Sadoff, C. and Grey, D. (2005). Cooperation on International Rivers. A Continuum for Securing and Sharing Benefits. In Water International, Volume 30, Number 4, Dec. 2005

White, D., Wester, F., Huber-Lee, A., Hoanh, C. T. and Gichuki, F. 2008. Water Benefits Sharing for Poverty Alleviation and Conflict Management: Topic 3 Synthesis Paper. CGIAR Challenge Program on Water and Food, Colombo

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