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<br />.D:ntO'S g <br /> <br />better use its water supply it must then determine what types of efficiency measures should <br />be promoted. Salvage water, defuied as changes in historical consumptive use, is least likely <br />to interfere with return flows relied on by others, but also has limited potential to add <br />significant supplies of water. Saved water, defined as changes in historical diversions can <br />yield larger volumes of water for new uses, but will require close analysis of return flow <br />patterns. Litigation over that analysis and the extent of the "no injury" rule can be expected. <br />Requiring review of salvage or saved water applications by the State Engineer may simplify <br />the fact finding process, and give other water users some protection without the expense of <br />objecting in water court. <br /> <br />If the state wants to take a more active role in promoting efficiency it can do so using <br />either a "carrot or stick" approach, with incentives or regulations. Examples of actions which <br />.might encourage more efficient operations are: removing current market barriers and <br />reducing transaction costs, funding programs designed to improve efficiency, and creating <br />new entitlements to water made available through conservation measures. Examples of <br />actions which could force more efficient water use include: more specific and tighter <br />definition of beneficial use, giving the State Engineer increased authority and resources to <br />curtail wasteful or inefficient practices, and regulation of agricultural return flows as a <br />nonpoint pollution source. <br /> <br />B. Resource Tradeoffs <br /> <br />Should wetlands, albeit artificial, be impaired to provide new water supplies? Does. <br />water consumed by vegetation along ditches and farm fields provide a valuable aesthetic and <br />habitat resource to the local community or is that water more valuable elsewhere? Do the <br />improvements to water quality that will result from reduced return flows offset the likely loss <br />of wetlands? Is preservation of artificial, irrigation-induced wetlands to be preferred over <br />efficiency changes that result in improved streamflows and benefits to riparian habitat? Can <br />salvage reduce the pressure to completely dry-up irrigated acreage as a source of municipal <br />water. How can efficiency efforts by groundwater consumers and pumpers' reliance on <br /> <br />31 <br />