if the abstraction charge reflects the opportunity cost of water in regions where water is abundant ie the opportunity cost will be low the investment is likely to materialise and could be located anywhere including in water scarce regions generating a cost that is not covered by the charge if the abstraction charge reflects the opportunity cost of waterscarce regions water availability will be protected but water abundant regions will lose the opportunity of a new activity this measure would be an incentive for local authorities to disclose information on water use and water expenditures it would also be an incentive to revise water entitlements so that over time they reflect actual use thereby generating more flexibility to reallocate available water possibly to new comers in basins where water was overallocated but not overused