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<br />'I ". <br /> <br />the appropriation system. <br /> <br />~ny efforts to protect areas of origin <br /> <br />are therefore in derogation of underlying appropriation prin- <br /> <br />ciples. <br /> <br />III. <br /> <br />THE AREA OF ORIGIN CONCEPT <br /> <br />In spite of the fundamental pOlicy embodied in the appropri- <br /> <br />ation doctrine favoring movement of scarce water resources to <br /> <br />benef ic ially usable locations, many sta tes followi ng t his <br /> <br />doctrine have enacted some form of statutory restrictions or <br /> <br />limitations on interbasin transfers. <br /> <br />Searching for an explana- <br /> <br />tion for such statutory provisions, the National Water Commission <br /> <br />report pointed to inadequacies in the market for allocating <br /> <br />water.3 <br /> <br />The Commission commented that areas of origin for <br /> <br />natural resources other than water do not receive such treatment, <br /> <br />31n its final report, the Commission stated: <br /> <br />Area-of-origin protection is peculiarly <br />.associated with water. Other resources are <br />not similarly treated, probably because they <br />are priced in conventional markets. For <br />coal, oil, copper, timber, and other natural <br />resources, the area of origin receives its <br />"protection" in the form of taxes and <br />revenues from the "export" of the resource. <br />In the absence of a pricing system for the <br />export of water, area-of-origin interests <br />have resorted to the political process to <br />obtain "in kind" protection, that is, <br />enactment of laws reserving water for the <br />area's "ultimate requirements" or providing <br />for recapture in the event of future need. <br />As a consequence of this approach, safeguards <br />for a water exporting area have usually been <br />tied to future or potential water development <br />in the area. <br />National Water Commission Report, supra note 1 at 323. <br /> <br />3 <br />