Responses to Economic Trends, Regulatory Changes, and Variable Climate and Hydrologic Conditions
There are over 25 established and emerging regional water markets across the Western United States that developed in response to new water demands, regulatory changes, ongoing scarcity concerns, and other factors. Each regional water market has distinct market drivers that motivate people to trade water entitlements, unique pricing that is influenced by supply and demand factors, and varying levels of water trading activity. The most active market regions include the Central Valley and South Coast of California and the northern Front Range of Colorado. Additional water markets will likely emerge in the coming years in response to a variety of market drivers, including economic, regulatory, and hydrological factors.