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.::.... C'.;!\'ERSITY OF COLOR.-\DO LAW REVIEW [Vol. 57 5Dte or Color3do, 3nc some much turther cownslre3m. possibly in Arizon3 3nd C31,fomia, This is a question of the "accounting stance" that is to be used to quantify the benefits and costs mentioned in (ll lnd (2) above, From a national point of view. any losses caused by the transfer should be counted as costS of the project. In practice. however. ac- counting stances are likely to be determined by the geographic bound- aries of public administrative units. from conservancy districts to states. regions. and the nation, Differences in the consequent coSts and benefits frequently lead to conflicts among jurisdictions over the desir- 3bility of various actIOnS or projects, including the need for compensa- tion. This indicates the need for 3n institutional framework within which all benefits and cOStS are taken into account. D, Nacure of {he Losses ro (he Area o/Or(gin Losses to the area of origin are likely to take four main forms. (I) current and fueure losses of net income directly associated with diver- sions and consumpcive uses that are curtailed because of a water trans- rer: (2) current and future losses of inscream values; (3) losses of 1I1l:0ffieS in 3.ctivities economicallv linked co chose diversions and in. stream values: and (4) losses which accrue to ~IY 3l large in the J.rt::.l of origin. Regarding (I). three classes of potentially affected activities stand oue. (a) currently operating direct diverters and consumers of water; (bl users of the return flows from the initial diverters; and (c) fueure water-using activities that currently do not e~ist. Currently operating activities that are curtaIled by a transfer are observable. and their losses of net income can be determined. Return fiows from these e~- isting activities can be estimated. and associated income losses can also be estimated. Such losses are currently protected under the appropria- tion doctrine, Fueure uses of water must be forecasted, using some type of fore- c3sting procedures or models, Many states have detailed state eco- nomic models. like Colorado's Forecasting and Simulacion Model that permits forecasting on a county or planning region basis. relating these forecasts to credible national forecasts (such as the Wharton School Forecasts or those of Data Resources. Inc.). Such models work rea- ,onably well on forecasting future levels of existing activities. but they ':~ll\not predicc JCli\"iti~s not already on che: sc~n~. Rc~~!"\'J.[Wll uf Wa[~r for IO-basm fUlurt: us~s is ~omc\\ hJ.t iH l1dds 'XlIt: [he prh)r JpprOpri;ltion doctrin~. which ~mrhJ.size~ present b~n~- n;';lal us~ of wacer. However. s~veral western staces now allow state