First, and perhaps most important, the U.S. knows from experience that water diversion projects work best if there is a clear, rational, balanced mechanism established right from the beginning for determining the market price of the transferred water. Just as the polluter pays principle is the foundation of addressing pollution control in an efficient and effective manner, the principle of user pays is the key to encouraging efficient use of scarce water resources. Only in this way will the full value of the transferred water be internalized, and included in the final price to the consumer. Second, and closely related, is the question of how to improve water distribution efficiency, even at the same time as increasing the overall pool of water resources available via the diversion project. Moving water half the way across the country, only to see it wasted through leaky pipes, careless consumption, or poorly-conceived irrigation systems, is a waste of resources and benefits no one.
Rational pricing is one key method to encourage efficiency in water distribution and use.
But local governments will also need to match this policy with strong investments in water conservation infrastructure, along with educational efforts to prepare consumers to maximize the efficiency with which they use water, in advance of the inevitable price rises. Third, in the United States we have also learned the hard way the importance of investing in good water recycling and pollution prevention systems. Again, the principle is the same. Water recycling and re-use, and cleaning up rivers and watersheds, increases the total amount of water available to a region for residential, industrial, and agricultural use. Water pollution control also brings immense public health benefits, as well as helping to protect biodiversity in affected ecosystems.