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<br />. <br /> <br />In the first place, the present complex political and legal arrangements <br /> <br />have evolved over many years and could not be easily altered. Even if they <br /> <br />. <br /> <br />~ <br />o <br />o <br />N <br /> <br />could be, and the upstream users utilized a smaller quantity of the water, <br /> <br />changing the upstream-downstream allocation would take us only part <br /> <br />way to the socially optimal level of per acre water use. Much would <br /> <br />. <br /> <br />depend on how each group chose to react in reducing quantities, and <br /> <br />this, in turn, would depend on the structure of water rights and state <br /> <br />. <br /> <br />administrative qualities. If junior appropriators were cut off from any <br /> <br />water allotment and senior appropriators were left unaffected, there <br /> <br />would be benefits conferred on downstream users because fewer acres <br /> <br />. <br /> <br />would be irrigated, the salt load would be diminished and the river flow <br /> <br />would be augmented. But the externality problem applying to those acres <br /> <br />irrigated by the senior appropriators would be unaffected. To attack this <br /> <br />. <br /> <br />problem, a per acre restriction on water use would have to accompany <br /> <br />the reallocation. One way to do it would be to indiscriminately cut the <br /> <br />. <br /> <br />water entitlement to each user to OA units per acre. Even then, however, <br />e <br /> <br />the farmer may not apply his entitlement equally to each acre as would <br />I <br />be socially optimal unless forced to do so. He would ge guided strictly by <br /> <br />the MNB function. If he could profit more by applying lOA' units of <br />I <br />water to each irrigated acre than by spreading it even+ among all potentially <br /> <br />irrigable acres at rate OAe, he would do so. It is difftcult to see how <br /> <br />he could be forced to use water at the socially optirrlallevel at reasonable <br /> <br />. <br /> <br />. <br /> <br />enforcement costs. He might be bribed to do so, but this option fa Us <br /> <br />. <br /> <br />10 <br /> <br />. <br />