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.. Discussion comments on paper entitled "Water Transfers and Environmental Protection" presented by Larry Morandi for the Colorado Water Workshop, Gunnison, Colorado, July 23, 1991. Ralph E. Clark III These comments are made from my personal perspective and do not necessari}y represent views of any organization of ~hich I am a member. I am indebted to many sources for information, concepts and perceptions. Quite a few of those sources are here today. Please do not hold them responsible for my interpretations. ==a=========:===c================================================ SOME THOUGHTS ON WATER MARKETING Our water allocation and reallocation processes for water combine market and political-legislat1ve-regulatory decision making. The mix - how much of one or the other - is an interpretation of how to reflect the public interest. There is increasing interest being given to market decision making for reallocation of water resources. In his excellent paper, Larry Morandi provides both detail and breadth in surveying the pioneering efforts at water marketing efforts in the western states. The concept holds promise but so far not much has actually been achieved. However, the case studies and examples given in the paper provide a very valuable "show and tell" of problems and pitfalls and, in turn, will advance the concept. With my opportunity to discuss Larry's paper I want to reflect on the case studies and examples he has set out with some thoughts focused on three topics. One is to emphasize some features of the context 1r1 which water marKeting is being attempted. The second is to consider the community responses to water markets. The third is to offer some cOlTlments on practicalities and possibilities. A. Features of the Context i. Market Potential ---- Water resources are being used more intensively and extensively - concurrently and sequentially - instream and out of stream - than ever before. There is also now a very complex ecology among water uses and users. The Los Angeles Times reported recently that the Goleta Water District made a seven year contract for 7,500 acre-feet of water a year to be delivered from British Columbia by tanker. The cost to users will be between $2,500 and $4,000 per acre-foot. The district's farmers currently pay about $300 per acre-foot and households pay $1,400. There appears to be potential for marketing water. 2. Decision Making ---- Some water uses and users are more institutionalized and legally recognized .than others. However, any reallocation now involves causing and distributing clearly perceived harms and disbenefits to current. users -not just distributing.benefits or