Could market forces be used to safely manage our nation’s water supply? Well the answer is yes, according to Robert Glennon of the group PERC, who recently published a study on the subject and has this to say: “At this point, the nation’s water future looks rather gloomy. Our existing water supply faces threats and the demand for new supplies is increasing. So what can we do? What we have not seriously undertaken is to encourage the reallocation of water from existing to new users through price incentives. Turning to market forces, new residential and commercial development could pay their own way by being required to purchase and retire existing water rights in exchange for permission to build. This tool offers the best way to protect the environment.”

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