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municipal water agencies, agricultural water districts, utilities, and the federal government— <br />primarily the Bureau of Reclamation and the Corps of Engineers.10 The federal government also has <br />major roles in implementing national environmental and water quality laws, overseeing tribal lands <br />and water rights, marketing hydropower, and managing the public lands that cover roughly half of <br />the West. Federal and state water law is often poorly coordinated and somewhat inconsistent, and is <br />a nearly constant source of intergovernmental tension. Water shortages, whether climate- related or <br />not, increasingly highlight these areas of conflict and uncertainty in the law, and draw attention to <br />the politically delicate intergovernmental and jurisdictional arrangements that characterize the <br />institutional environment. <br />CONNECTING SCIENCE TO POLICY <br />PULLING THE LEVERS <br />It can be (and is) argued that the system of allocation and management of the West's water resources <br />is both inflexible and flexible. Much of the inflexibility derives from the fact that many rivers were <br />fully allocated (or "appropriated ") well over a century ago, and were apportioned using a strict <br />priority system that has proven highly resistant to fundamental reform, although minor innovations <br />are common." Whether prior appropriation is an "antiquated" system is the subject of intense <br />debate, but it is undeniably a fixture in western water institutions. Somewhat analogous is the role of <br />physical structures (dams and reservoirs) on western river systems, generally designed in previous <br />eras to serve purposes, sectors and populations which may or may not best reflect current priorities. <br />These same factors can also be sources of flexibility. Prior appropriation, for example, allows for the <br />reallocation of water through water markets, a mechanism that is key to much of the urban growth <br />that characterizes the modern West. In recent years, many institutional innovations have been geared <br />at facilitating temporary transfers of water, a valuable approach to drought management and, more <br />generally, risk management that allows cities to protect high - valued water uses while avoiding <br />unnecessary dewatering of agriculture in normal years. Similarly, dams and reservoirs can also be a <br />source of flexibility in water systems, through fundamental re- designation of project purposes to <br />more subtle modifications of reservoir rule curves. The potential for change is vast, as the United <br />States trails only China in the number of dams. 12 Over two- thirds of the national water storage <br />capacity is found in the West, home to the nation's 10 largest dams. <br />Still additional flexibility is, at least theoretically, available through demand management strategies, <br />including conservation programs at both the municipal and agricultural scales. 13 Economic policies <br />that influence water pricing, water system financing, subsidy programs, and the strength and <br />availability of crop markets can all be particularly salient in influencing water demand. <br />10 They are, of course, important exceptions. In California, for example, the state plays an active role in water <br />resource planning and development, as evidenced by the State Water Project. <br />11 The agenda of reformers is typically focused on broadening environmental protections, encouraging more <br />economically responsible financing and pricing policies, and addressing equity issues between water allocation <br />winners and losers. <br />12 Figures compiled for the World Commission on Dams indicates that the United States is home to <br />approximately 6,575 dams at least 15 meters in size, second globally to China's 22,000, and well more than <br />twice as many as the rest of North America, Central America and South America combined. <br />13 Several western states have per capita use figures nearly 3 times the national average. <br />11 <br />