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policymakers should be aware of the direct and offsite impacts of individual transfer proposals before reacting with legislation. For a transfer similar to that proposed by Gallowav, substitution among crops and dryland conversion opportunities can minimize the adverse secondary impacts. In Radosevich's words, states should not "cut off their nose to spite their face" by categorically prohibiting such transfers (14). There is also the obvious benefit of increased income accruing to the basin, although there is no assurance that its recipients will remain there to spend it. The main cost of such a plan is the long term sacrifice of an important resource such as water, whose ability to draw an emotional response is hard to understate. Future research may discover that more flexible transfer plans, such as a lease option by the urban user during dry years, may furthur reduce these adverse impacts. The offsite impacts of changes in river salinity and hydropower production appear to overshadow the agricultural impacts, from an economic standpoint. Although evaluated here in a rather "back of the envelop" fashion, these impacts are significant and should be considered in evaluating transfers. Whether Southern California interests, such as San Diego, will continue to attempt to gain use of Upper Basin agricultural water depends on the economic and political feasiblity of their other alternatives. However, it appears there are possibilities of net gains to both parties involved in a transfer of 400,000 acre feet of agricultural water to Lower Basin urban uses. REFERENCES (1) California General Assembly Bill 2746 (AB2746 (2) Holme, H.K, "Obstacles to Interstate Transfers of Water: Many a Slip Twixt the Cup and Lip." Pages 267-286 LJ. MacDonnell, ed. Perspggives on Colorado Water Law. University of Colorado School of Law, 1986. (3) Driver, B., "Western Water: Tuning the System." Report to the Western Governors Association, Denver, Colorado, 1986. (4) Twin Falls Times-News, "Limits on Water Sales in West May be Eased." Twin Falls, Idaho, 1986. (5) Landry, S., 'The Galloway Proposal and Colorado Water Law: The Limits of the Doctrine of Prior Appropriation.' Natural Resources Journal. 25(4), 1986. (6) Getches, D., Associate Professor, University of Colorado School of Law, Boulder, and former Executive Director, Colorado Department of Natural Resources. Personal communication, July, 1987. (7) English, B.C., 'Assumptions in the CARD/RCA Crop Sector: A Review.' Center for Agricultural and Rural Development, Series Paper 85-1, 1985. (8) United States Department of Agriculture, "1982 National Resources Inventory." Soil Conservation Service, 1984. (9) Howitt, R.E. and P. Mean, "Positive Quadratic Programming Models." Working paper, unnumbered. Department of Agricultural Economics, University of California, Davis. 1985.