By Karie Boone, Center for Sustaining Agriculture and Natural Resources, Washington State University

Water markets is one potential tool for moving water between uses such as instream water for sockeye in the Yakima Basin (top left; photo: WA Dept. of Ecology) or irrigating crop fields (top right; photo: Aspect Consulting). Such movement can be particularly important when flows are low (Walla Walla River runs low late in the irrigation season (bottom; photo: WA Dept. of Ecology).
As climate change increases the likelihood of a mismatch in the timing of when water is needed and when it is available, policymakers, water managers, and water users are exploring water markets as one potential tool to move water between uses. Water markets facilitate the voluntary transfer of water between sellers and buyers, on either a temporary (lease) or permanent (sale) basis. To some this has meant water is accessible for crops during drought or for new housing developments. For fish, it may mean more water instream that enhances survival.
And yet, water markets are not quite as simple as other markets (say, the grocery store). There are lots of features of water that make purchasing it different than buying a loaf of bread. Continue reading