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<br />00105"1 <br /> <br />Valley farmers.1o How will such a finding in the Bay-Delta hearings influence future board <br /> <br />investigations into the reasonableness of water use by Central Valley farmers? When will these <br /> <br />farmers effectively face an "obligation to trade?" And, how will the prospect of an obligation to <br /> <br />trade affect the course of negotiations before regulatory investigations into the reasonableness <br /> <br />of water use? <br /> <br />These questions are among the most perplexing of all issues and questions raised in this <br /> <br />essay. Obviously, water use in agriculture (or any other use for that matter) must be held to a <br /> <br />legal standard of reasonable use. Similarly, the prospect of water trades, and their <br /> <br />environmental consequences, should be considered during environmental review of proposals for <br /> <br />new water projects or expanded diversions under existing rights. (My concerns should not be <br /> <br />read as stating a case for abandoning the reasonable use standard, or for banishing the prospect <br /> <br />of water trades from environmental ~pact statements.). However, the development of criteria <br /> <br />for regulatory review must take into account that it shapes the conduct of parties engaged in <br /> <br />negotiations of potential water trades. <br /> <br />GROUNDWATER CONTROL <br /> <br />As already discussed, water reallocation is likely to occur in states where groundwater <br /> <br />supplies a significant part of agricultural water use. Therefore, municipalities will be engaged in <br /> <br />the acquisition of groundwater supplies. At the same time, many aquifers are, at best, partly <br /> <br />10 The scenario in the text is hypothetical, but not fanciful. The original draft staff report <br />on the Bay-Delta hearings made this recommendation. The draft report was subsequently <br />withdrawn. <br /> <br />15 <br />