Water trading

"Water trade" redirects here. For the Japanese nightlife industry, see Mizu shōbai.

Water trading is the process of buying and selling water access entitlements, also often called water rights. The terms of the trade can be either permanent or temporary, depending on the legal status of the water rights. Some of the western states of the United States, Chile, South Africa, Australia, Iran and Spain's Canary Islands have water trading schemes. Some consider Australia's to be the most sophisticated and effective in the world.[citation needed] Some other countries, especially in South Asia, also have informal water trading schemes. Water markets tend to be local and informal, as opposed to more formal schemes.[1]

Some economists argue that water trading can promote more efficient water allocation because a market based price acts as an incentive for users to allocate resources from low value activities to high value activities. There are debates about the extent to which water markets operate efficiently in practice, what the social and environmental outcomes of water trading schemes are, and the ethics of applying economic principles to a resource such as water.

In the United States, water trading takes on several forms that differ from project to project, and are dependent upon the history, geography, and other factors of the area. Water law in many western U.S. states is based in the doctrine of "prior appropriation," or "first in time, first in use." Economists argue that this has created inefficiency in the way water is allocated, especially as urban populations increase and in times of drought. Water markets are promoted as a way to correct these inefficiencies.

In addition to the supply of tap water, many local water resources are also being acquired by private companies, most notably Nestlé Waters with its numerous brands, in order to provide commodity for the bottled water industry. This industry – which often bottles common ground water and sells it as spring water – competes with local communities for access to their water supplies, and is accused of reselling the water at drastically higher prices compared to what citizens pay for tap water.[2][3][4][5][6][7][8][9][10][11][12][13]

  1. ^ Cite error: The named reference Carey and Sunding 2001 was invoked but never defined (see the help page).
  2. ^ Little Ego-Gnome: Brand Awareness
  3. ^ Jakarta Globe: Nestle Uses Social Media for Bottled Water, Palm Oil Damage Control
  4. ^ "The Council of Canadians Acting for Social Justice: U of A appointment and degree for Nestle Chairman facing international backlash. Over 70 organizations from more than 20 countries condemn Brabeck-Letmathe honorary degree". Archived from the original on 2013-02-03. Retrieved 2013-01-29.
  5. ^ "The Council of Canadians Acting for Social Justice: Nestlé chair invited to join who's who of water privateers on new University of Alberta water board". Archived from the original on 2013-02-03. Retrieved 2013-01-29.
  6. ^ "INFACT Quebec: University of Alberta to Award Nestlé Chairman Honorary Award. Letter from Carole Dobrich, INFACT Quebec President to University of Alberta President Samarasekara and Chancellor Hughes". Archived from the original on 2016-03-25. Retrieved 2013-01-29.
  7. ^ "Salida Citizen: Stop Nestlé's water grab, or let them help themselves?". Archived from the original on 2014-10-19. Retrieved 2013-01-29.
  8. ^ ICMR India (IBS Centre for Management Research): Nestle's Social Irresponsibility in Developing Nations
  9. ^ Glen Arbor Sun: Rumbles on Ice Mountain
  10. ^ Chronicle Extra: Nestle raises stakes in bottled water battle[permanent dead link‍]
  11. ^ "Press Herald (Maine Today): Water deal too sweet?". Archived from the original on 2009-02-27. Retrieved 2013-01-29.
  12. ^ "US Water News: Group plans water-extraction tax, asks state support". Archived from the original on 2013-01-20. Retrieved 2013-01-29.
  13. ^ "Wicked Local: Water fight already rages over Wekepeke". Archived from the original on 2009-02-27. Retrieved 2013-01-29.