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<br />4 WATER AND CHOICE IN THE COLORADO BASIN <br /> <br />This Colorado case study sketches the physical and economic setting and <br />outlines the history of water development in the basin. It points to some <br />serious deficiencies in fundamental knowledge of the water system in the <br />basin, describes the broad range and diversity of aims in water management, <br />and shows that there is perhaps no better illustration of the nonmarket- <br />valuation problem than the Grand Canyon. It points out possible types of <br />investments for the economic growth of a sample region (in this case, the <br />State of Arizona), and suggests alternative ways in which water may be used <br />for economic growth in that region. <br />The recommendations toward which this exposition builds include: <br />(l) investigations needed to expand the range of choice for planning pur- <br />poses in the Colorado basin, thus suggesting a kind of analysis that should <br />be fruitful in any basin; and (2) those relating to research of broader <br />significance designed to improve the planning and decision processes. <br />