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<br />OG:G4~ <br /> <br />Generally speaking, irrigation districts serve the greatest share of irrigated acreage served by <br /> <br /> <br />irrigation organizations. Moreover, these states have a large share of their acreage irrigated <br /> <br /> <br />outside of formal organizations -- an indicator of dependence on groundwater. <br /> <br />INSTITUTIONAL CAPACITY OF IRRIGATION ORGANIZATIONS <br /> <br />Traditionally, the function of irrigation organizations has been to develop reliable,. <br /> <br /> <br />low-mst water supplies for their customers. This activity required organizations to marshall <br /> <br /> <br />expertise in hydrology, engineering, and, in the case of contractors with federal water projects, <br /> <br /> <br />negotiating contracts with the federal government. Organizational staff focused on operational <br /> <br /> <br />questions, such as "keeping the system running' and complying with the terms of federal <br /> <br />contracts. Board of directors serve in a part-time capacity, bringing with them the expertise <br /> <br /> <br />they have accumulated from successfully operating their own farms. <br /> <br />The growing regulatory scrutiny over water use and the emerging opportunities for water <br /> <br /> <br />trades requires expertise well outside that found in traditional irrigation organizations. What <br /> <br /> <br />are reasonable expectations about potential trading opportunities? How does the board <br /> <br /> <br />distinguish good deals from bad? How does a board structure a transaction to assure that its <br /> <br /> <br />customers receive benefits from a trade, not simply less water? And how does a board . <br /> <br />persuade residents that the trade contributes to the overall economic and environmental health <br /> <br />of the community? These questions must be answered. Otherwise, the organization is <br />paralyzed by confusion and dissension. <br /> <br />9 <br />