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<br />DRAFT <br /> <br />characteristic of the appropriation system. <br /> <br />I\.ny effor.ts to <br /> <br />protect areas of origin are therefore in derogation of underlying <br /> <br />appropriation principles. <br /> <br />I I r. <br /> <br />THE I\.REA OF ORIGIN CONCEPT <br /> <br />In spite of the fundamental policy embodied in the appropri- <br /> <br />ation doctrine favoring movement of scarce water resources to <br /> <br />beneficially usable locations, many states fOllowing this <br /> <br />doctrine have enacted some form of statutory restrictions or <br /> <br />limitations on interbasin transfers. <br /> <br />It is interesting to <br /> <br />consider the reasons for such statutory provisions. The National <br /> <br />Water Commission in its final report saw the issue in terms of <br /> <br />political action filling the gap left because of an inadequate <br /> <br />market for allocating water.3 <br /> <br />The Commission commented that <br /> <br />3In its final report, the Commission stated: <br /> <br />Area-of-origin protection is peculiarly <br />associated with water. Other resources are <br />not similarly. treated, probably because they <br />are priced in conventional markets. For <br />coal, oil, copper, timber, and other natural <br />resources, the area of origin receives its <br />"protection" in the form of taxes and <br />revenues from the "export" of the resource. <br />In the absence of a pricing system for the <br />export of water, area-of-origin interests <br />have resor ted to the pol i tical process to <br />obtain "in kind" protection, that is, <br />enactment of laws reserving water for the <br />area's "ultimate requirements" or providing <br />for recapture in the event of future need. <br />As a consequence of this approach, safeguards <br />for a water exporting area have usually been <br />tied to future or potential water development <br />in the area. <br />National Water Commission Report, supra note I at 323. <br /> <br />3 <br />