by Reed Watson The second case study in PERC's Water as a CropTM
series features the Colorado River Water Bank, a market-based
policy proposal that could improve Colorado's long-term water
security. As the case study explains, the Colorado River Compact
obligates the state of Colorado and other Upper Basin states to
leave a certain amount of water in the Colorado River for Lower
Basin states. As Colorado's growing population demands more and
more water, the state risks violating that agreement. The
proposed water bank stands to alleviate that risk -- and to
reduce the cost should a curtailment occur -- by allowing water
users throughout Colorado to trade consumption rights. Click
here to read the case study. For more on the series, see Cheney
Lake Watershed: Farming Water Quality in Kansas. Reed Watson is
a research fellow and the coordinator of applied programs at
PERC.