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<br />on': I'lt;'? <br />_L U _. <br /> <br />of acceptable agreements to all parties may require an imaginative rethinking of the nature of <br /> <br />the trustee relationship between districts and water users. <br /> <br />DISTRICT GOVERNANCE AND LOCAL CONCERNS <br /> <br />District boards must also address concerns about the effect of water trades on the local <br /> <br />environment and local economies. Board members will address these concerns naturally by <br /> <br />their self-interest in political survival if electors include a broader constituency than agricultural <br /> <br />water users. But even if residents of local communities are disenfranchised, board members <br /> <br />may still confront local concerns because of the need to secure local permits or pass <br /> <br />environmental review of proposed water transfers. <br /> <br />Many several possible approaches have been explored for how a community may use a <br /> <br /> <br />water trade to promote local economic development 8 Unfortunately, local economic <br /> <br />development agencies do not have a promising track record. Even if a successful agency could <br /> <br />be designed, irrigation organizations probably lack the power to establish or contribute monies <br /> <br />to them. Moreover, holders of shares in mutuals or the equitable and beneficial interest in <br /> <br />irrigation districts would probably view the dedication of proceeds from water trades to such <br /> <br />activity as diminishing the legal nature, and certainly the economic value, of their water right. <br /> <br />8 See "Avoiding Owens Valley Syndrome: Using Water Trades to Promote Rural <br />Economic Development," Water Strategist 5, 6, 13 (Oct 1987). <br /> <br />12 <br />