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rationing agent in areas of I imited recharge. Several ways of re- distributing the tax revenues are possible as long as the procedure does not interfere with the rationing function of the tax. The rationing function can be met so long as the redistribution of revenue is not tied to ground-water withdrawal rates of the farmers. Research is needed on such models to determine a politically acceptable procedu~e. Dr. Biere recognized the ~roblem'of acceptance of his philosoph~ and suggested studies on importing water and artificial rechargi. On the other hand, where importation and artificial recharge are not economically feasible, institutions should be developed ~o economically ration the available resourc~s. In conclusion, he discussed briefly SOme of the decision models used in resource management and commented or " the versati I ity of such models in planning or decision strategy: ' " " Following the seminar, Dr. Biere was requested to'amplify ,his comments regarding the common property nature of aquifers. '~he problem bfoverdraft is accentuated by the common-property character of the aquifer. . It is common property because water rights are held jointly until the individual captures the water,' through pumping. Since the rights are held in common, no individual would be expected to' account for the cost of re'delcing water supply in the a'quifer. The result is that, in the aggregate, water is consumed at a rate whi'ch is greater than the socially optimal rate. To see this, one needs only to note the behavior of an individual pumper who obeys the assumptions' of marginal analysis. With each productive process where water is an input, there is associated a value of marginal product schedule for water. This'value of marginal product schedule is also the enterpreneur's water demand schedule indicating how much he is wi 11 ing to pay 'for an additional unit of water' as an input. Not all of the water withdrawn is used in produc- tion. Some is consumed directly. A demand curve for water also exists for these consumers. The supply curve for,any pumper is the short run marginal pumping cost curve, as it represents the additional cost of supplying another unit of water. Each , ' pumper wi II pump that quanti ty for which the cost of pumpi'ng the last increment is equal, to the value of this last increment. The difficulty is that pumpers fai I to recognize all of the" 'variable costs associated'with the withdrawal of water from the aquifer. The pumper perceives all costi associated ~ith his pumping unit, but he fails to recognize that his action will increase the pumping cost of other pumpers. Hence, private marginal cost, which does not 'recognize these external costs, is less than social marginal cost, which includes these 16.