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<br />000990 <br /> <br />Otbers suggest that affecting water markets by putting pressure on irrigation districts to <br /> <br /> <br />make a trade may not be so bad. Sbouldn't a buyer bave the advimtage of maybe making a <br /> <br /> <br />lower bid if in fact water bas been used imprudently, if the acquirer bas a higher beneficial <br /> <br /> <br />use? The issue may be in tbe nature of what signal we are sending to agricultural users, and <br /> <br /> <br />what does this do to tbe strategic cboices of tbe bl!yer. <br /> <br />Use of brokers as fnn/Tinters <br /> <br />As an alternative to or in addition to a trade it or lose it policy, tbe use of brokers <br /> <br /> <br />would facilitate voluntary trading, This may also, in some cases, be an alternative to forcing <br /> <br /> <br />district boards to consider the position of other interest groups, Brokers with broader interests <br /> <br /> <br />may be able to develop relationships between district boards and otber interest groups sucb as <br /> <br /> <br />cities, tribes, and environmental organizations,EDF bas acted as a broker in tbese types of <br /> <br /> <br />transactioDS. <br /> <br />ErJemaJ inantives 10 tronsft!T <br /> <br />Many participants suggested tbe role of money and additional water as an inceDtive, or <br /> <br />carrot, to voluntarily change or to transfer water. One view expressed was tbat profits from <br /> <br />transfers of water may be limited within Bureau of Reclamation projects. The Bureau is in a <br /> <br /> <br />revenue-enhancing position at thiS time and may take any profits reaped from project water <br /> <br />transfers. This would provide less inCentive for irrigaiors to want to transfer their project <br /> <br />water. The Bureau may not be playing a very active role in transfer activity, at least in <br /> <br />Arizona Bureau projects' plumbing, ~owever, is important to water reall~tions. <br /> <br />12 <br />