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98 A. J. DOUGLAS AND R. L. JOHNSON $1100 per acre-foot. Ward35 uses $40 per acre-foot as a representative value for summer evaporation losses on the Rio Chama. Therefore, the net benefits gain from releasing an acre-foot of water from the municipal reservoirs in the summer would be about $1060 in early 1980's dollars. Bishop et af.4 estimated aggregate willingness- to-pay for various annual flow scenarios for the lower Colorado River in the vicinity of the Glen Canyon Dam. The technique involved combining data on monthly visi- tation rates with contingent value method data on benefits conferred by various short-run flows. The annual flow level was held constant at 8.25 million acre-feet. The annual flow release regime that maximized nonmarket recreation benefits produced $9 million per annum in benefits from angling and rafting.4 Recall Figure 1, and note the region SPP' marked by horizontal striping. This region is the producer's surplus. Bishop et af.4 might have incorporated estimates of the producer's surplus for the 21 commercial companies that provide whitewater rafting tours for the Colorado River below Glen Canyon Dam. The producer's sur- plus is a measure of the value provided by publicly owned resources, and, like the consumer surplus, reflects a paucity of substitutes. A part of the receipts of the 21 companies providing rafting tours is a return to fixed resources, including the stream flow ofthe Colorado River. Some of the recent research that is used to bolster claims that in stream flows generate socially valuable expenditures does not estimate nonmarket benefits. Employment and expenditure effects are often neglected by resource economists in water allocation conflicts. Economists working for development interests often call attention to the regional job impacts of water based development projects.8 A recent publication by Cordell et af.36 illustrates the use of a major research tool that is cur- rently available to economists. IMPLAN is a US Forest Service software package and supplemental data base that estimates jobs impacts for various outdoor related recreation activities based on site specific or regional expenditure data. Cordell et af.36 use IMPLAN to estimate the jobs impacts from recreation expenditures at three mid-Atlantic region riverine recreation sites operated by the National Park Service. Note, however, that in stream flow benefits measure social value. Total regional wage payments are a measure of aggregate regional purchasing power. Economists who report both gains in jobs and changes in nonmarket benefits should not report their results as the sum of two disparate dollar values. Ribaudo and Piper37 (1991) use a cross-section angling participation equation to estimate nonmarket water quality improvement benefits generated by the Conservation Reserve Program (CRP) of the Food Security Act of 1985. Diminished contaminant loads in farm runoff are the source of the CRP related improvement in water quality. Ribaudo and Piper's37 participation equation uses water quality as a key explanatory variable. The total net discounted social benefits of the CRP ~rom increased sportfishing participation benefits are $46 million for the ten year life of the program.37 WATER ALLOCATION ISSUES Loomis23 provides information on the gross and net benefits of improved instream flows. He used a contingent value method study to estimate benefits provided by streamftows that feed California's Mono Lake. The recreational activities in ques- tion are provided by the surface waters of Mono Lake, not the streams that feed them. However, as the City of Los Angeles began exercising water rights it acquired