There are some isolated exchanges, but in terms of a true market we haven't seen much happen. We try to look at what conditions need to be established for a market to exist and why we haven't seen more markets develop. We are conducting studies and doing research that helps determine what needs to be done to open these markets up. You need to establish private property rights and those private property rights need to be transferable. By establishing private property rights, that helps to internalize both the costs and the benefits of decisions people make on how to use their water.
People then become more responsible for the decisions that they make.
For the most part water is perceived to be an open access free good in many parts of the country and people aren't responsible for the decisions that they make. They just use water without considering how their uses are affecting other people's uses of that water. Key to that, you also need to make those water rights transferable. This improves allocation in two ways. First, it moves water from lower to higher valued uses.