Question

What are some potential “third-party effects”
in the large-scale transferring of water rights from agricultural to urban areas?

Answer 1

The impact of water rights from agriculture to the urban areas result in varied, deep and substantial effects to various parties.

Third parties can include ethnic communities, rural communities, Indian tribes, federal taxpayers, certain water right holders, and people taking active participation in the agricultural and environmental activities.

The transfer of water rights from agriculture to the urban areas results in some of the third-party effects. These effects can be categorised into environmental, social and economic effects. The environmental effects include the effects not only on wetlands, wildlife, fishes and sea animals, or instream flow, but also on the recreational activities based on streamflows and the quality of water in downstream and upon water animals. On the other hand, the economic effects include effect on business opportunities, jobs and thus, upon household incomes.

The social effects include many changes that occur in rural as well as urban communities, deviations in the community structure and the rights of control over water resources. The overall damage to the visual features and to the natural habitats and resources are important from the local residents' point of view.

The water rights transfer from agriculture to urban uses might lead to the exhaustion of irrigated land, rich in nutrients and minerals. This might result in soil erosion, crop damage and less production.

Moreover, the loss from retirement from production resulting in the loss of agri-businesses and agricultural jobs might result in harm to the economic growth. The land and water resources needed for development in such areas might not be available due to the water transfers.