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<br />DRAFT <br /> <br />because of a reduction in water diversions and consumption? Four <br /> <br /> <br />classes of potentially affected activities stand out: <br /> <br /> <br />(1) Currently operating direct diverters and consumers of <br /> <br /> <br />water; <br /> <br /> <br />(2) Users of the return flows from the initial diverters; <br /> <br /> <br />(3) Activities that are not direct users of direct users of <br /> <br /> <br />significant quantities of water but that are linked to the direct <br /> <br /> <br />water users as either providers of inputs or as processors of <br /> <br /> <br />outputs; and <br /> <br /> <br />(.4) Future water-using activities that currently do not <br /> <br /> <br />exist. <br /> <br /> <br />Currently operating activities that are curtailed by a <br /> <br /> <br />trans fer are observable and the ir losses 0 f ne t income ca n be <br /> <br /> <br />determined. Return flows from these ex isting activities are <br /> <br /> <br />difficult to estimate, but such estimates are frequently made. <br /> <br /> <br />Then associated income losses can also be estimated. <br /> <br /> <br />If a direct water using activity such as irrigated agricul- <br /> <br /> <br />ture is curtailed, certain "backward linked" industries like farm <br /> <br /> <br />equipment and chemical suppliers and certain "forward linked" <br /> <br /> <br />industries like livestock, food processing, and meat packing <br /> <br /> <br />industries. will find their levels of activities also diminished <br /> <br /> <br />with consequent reductions in their net incomes. Some of the <br /> <br /> <br />human and other resources consequently left unemployed will find <br /> <br /> <br />new employment, but for those left unemployed over var ious <br /> <br /> <br />intervals, the income losses are losses attr ibutable to the <br /> <br /> <br />transfer. These income losses can be estimated but are subject <br /> <br />46 <br />