Flood Risk Reduction from Agricultural Best Management Practices

Best management practices (BMPs) play an important role in improving impaired water quality from conventional row crop agriculture. In addition to reducing nutrient and sediment loads, BMPs such as fertilizer management, reduced tillage, and cover crops could alter the hydrology of agricultural systems and reduce surface water runoff. While attention is devoted to the water quality benefits of BMPs, the potential co‐benefits of flood loss reduction are often overlooked. This study quantifies the effects of selected commonly applied BMPs on expected flood loss to agricultural and urban areas in four Iowa watersheds. The analysis combines a watershed hydrologic model, hydraulic model outputs, and a loss estimation model to determine relationships between hydrologic changes from BMP implementations and annual economic flood loss. The results indicate a modest reduction in peak discharge and economic loss, although loss reduction is substantial when urban centers or other high‐value assets are located downstream in the watershed. Among the BMPs, wetlands, and cover crops reduce losses the most. The research demonstrates that watershed‐scale implementation of agricultural BMPs could provide benefits of flood loss reduction in addition to water quality improvements.     

Model Based Nitrate TMDLs for Two Agricultural Watersheds of Southeastern Minnesota1

Abstract: In this study, a set of nitrogen reduction strategies were modeled to evaluate the feasibility of improving water quality to meet total maximum daily loads (TMDLs) in two agricultural watersheds. For this purpose, a spatial‐process model was calibrated and used to predict monthly nitrate losses (1994‐96) from Sand and Bevens Creek watersheds located in south‐central Minnesota. Statistical comparison of predicted and observed flow and nitrate losses gave r² coefficients of 0.75 and 0.70 for Sand Creek watershed and 0.72 and 0.67 for Bevens Creek watershed, respectively. Modeled alternative agricultural management scenarios included: six different N application rates over three application timings and three different percentages of crop land with subsurface drainage. Predicted annual nitrate losses were then compared with nitrate TMDLs assuming a 30% reduction in observed nitrate losses is required. Reductions of about 33 (8.6 to 5.8 kg/ha) and 35% (23 to 15 kg/ha) in existing annual nitrate losses are possible for Sand and Bevens Creek watersheds, respectively, by switching the timing of fertilizer application from fall to spring. Trends towards increases in tile‐drained crop land imply that attaining nitrate TMDLs in future may require other alternative management practices in addition to fertilizer management such as partial conversion of crop land to pasture.     

Agroforestry buffers for nonpoint source pollution reductions from agricultural watersheds

Despite increased attention and demand for the adoption of agroforestry practices throughout the world, rigorous long-term scientific studies confirming environmental benefits from the use of agroforestry practices are limited. The objective was to examine nonpoint-source pollution (NPSP) reduction as influenced by agroforestry buffers in watersheds under grazing and row crop management. The grazing study consists of six watersheds in the Central Mississippi Valley wooded slopes and the row crop study site consists of three watersheds in a paired watershed design in Central Claypan areas. Runoff water samples were analyzed for sediment, total nitrogen (TN), and total phosphorus (TP) for the 2004 to 2008 period. Results indicate that agroforestry and grass buffers on grazed and row crop management sites significantly reduce runoff, sediment, TN, and TP losses to streams. Buffers in association with grazing and row crop management reduced runoff by 49 and 19%, respectively, during the study period as compared with respective control treatments. Average sediment loss for grazing and row crop management systems was 13.8 and 17.9 kg ha yr, respectively. On average, grass and agroforestry buffers reduced sediment, TN, and TP losses by 32, 42, and 46% compared with the control treatments. Buffers were more effective in the grazing management practice than row crop management practice. These differences could in part be attributed to the differences in soils, management, and landscape features. Results from this study strongly indicate that agroforestry and grass buffers can be designed to improve water quality while minimizing the amount of land taken out of production.     

SOIL CONSERVATION PRACTICES AND WATER QUALITY: IS EROSION CONTROL THE ANSWER?1

ABSTRACT: This paper is a computer simulation analysis of an agricultural nonpoint pollution problem. Computer modeling is a universally applicable tool that can be used for establishing the linkages between and the quality of agricultural runoff in both surface and subsurface flow. The tradeoffs between the costs of soil conservation practices and water quality are reported, and the economic implications of such tradeoffs are discussed. Soil and nutrient losses resulting from crop production practices are analyzed using a field-scale computer simulation model (CREAMS). No-till planting, reduced tillage, and sod waterway systems are more cost effective than other practices for controlling soil and nutrient runoff losses. Nitrate leaching losses are increased slightly by most soil conservation practices. Terrace systems and permanent vegetative cover impose the greatest societal cost for water quality protection. Public cost sharing and tax incentives encourage farmers to adopt expensive structural practices, and policies are needed to get cost-effective practices implemented on critical acreage. Extensive treatment of land is necessary for agricultural best management practices (BMPs) to significantly improve water quality in areas that are intensively farmed.     

INTEGRATING PHOSPHORUS AND NITROGEN DECISION MANAGEMENT AT WATERSHED SCALES1

ABSTRACT: The persistence of water quality problems has directed attention towards the reduction of agricultural nonpoint sources of phosphorus (P) and nitrogen (N). We assessed the practical impact of three management scenarios to reduce P and N losses from a mixed land use watershed in central Pennsylvania, USA. Using Scenario 1 (an agronomic soil P threshold of 100 mg Mehlich‐3 P kg^‐1, above which no crop response is expected), 81 percent of our watershed would receive no P as fertilizer or manure. Under Scenario 2 (an environmental soil P threshold of 195 mg Mehlich‐3 P kg^‐1, above which the loss of P in surface runoff and subsurface drainage increases greatly), restricts future P inputs in only 51 percent of the watershed. Finally, using scenario 3 (P and N indices that account for likely source and transport risks), 25 percent of the watershed was at high risk or greater of P loss, while 60 percent of the watershed was classified as of high risk of nitrate (NO₃) leaching. Areas at risk of P loss were near the stream channel, while areas at risk of NO₃ leaching were near the boundaries of the watershed, where freely draining soils and high manure and fertilizer N applications coincide. Remedial measures to minimize P export should focus on critical source areas, while remedial measures to reduce N losses should be source based, concentrating on more efficient use of N by crops.     

RESERVOIR SEDIMENTATION AND ITS CAUSES IN ILLINOIS1

ABSTRACT: During the years 1930 to 1978 a research program has been carried out in Illinois dealing with reservoir sedimentation. Detailed surveys have been made on 107 lakes. A generalized graph allows annual reservoir capacity loss in percent to be estimated based on size of watershed, lake capacity, and watershed ratio. For the 258 square miles of land on the watershed of Lake Springfield, complete soil maps were measured using a graphic digitizer. A computer readable map was produced. The Universal Soil Loss Equation was solved to provide upland soil losses for each acre of the watershed. Average watershed soil loss was 3.96 tons per acre per year, and 24 percent of this was delivered to the lake.     

Decoupling Streamflow Responses to Climate Variability and Land Use/Cover Changes in a Watershed in Northern China

Restored annual streamflow (Q_r) and measured daily streamflow of the Chaohe watershed located in northern China and associated long‐term climate and land use/cover data were used to explore the effects of land use/cover change and climate variability on the streamflow during 1961‐2009. There were no significant changes in annual precipitation (P) and potential evapotranspiration, whereas Q_r decreased significantly by 0.81 mm/yr (p < 0.001) over the study period with a change point in 1999. We used 1961‐1998 as the baseline period (BP) and 1999‐2009 the change period (CP). The mean Q_r during the CP decreased by 39.4 mm compared with that in the BP. From 1979 to 2009, the grassland area declined by 69.6%, and the forest and shrublands increased by 105.4 and 73.1%, respectively. The land use/cover change and climate variability contributed for 58.4 and 41.6% reduction in mean annual Q_r, respectively. Compared with the BP, median and high flows in the CP decreased by 38.8 and up to 75.5%, respectively. The study concludes that large‐scale ecological restoration and watershed management in northern China has greatly decreased water yield and reduced high flows due to the improved land cover by afforestation leading to higher water loss through evapotranspiration. At a large watershed scale, land use/cover change could play as much of an important role as climate variability on water resources.     

Subsurface application of poultry litter in pasture and no-till soils

Poultry litter provides a rich nutrient source for crops, but the usual practice of surface-applying litter can degrade water quality by allowing nutrients to be transported from fields in surface runoff while much of the ammonia (NH3)-N escapes into the atmosphere. Our goal was to improve on conventional titter application methods to decrease associated nutrient losses to air and water while increasing soil productivity. We developed and tested a knifing technique to directly apply dry poultry litter beneath the surface of pastures. Results showed that subsurface litter application decreased NH3-N volatilization and nutrient losses in runoff more than 90% (compared with surface-applied litter) to levels statistically as low as those from control (no litter) plots. Given this success, two advanced tractor-drawn prototypes were developed to subsurface apply poultry litter in field research. The two prototypes have been tested in pasture and no-till experiments and are both effective in improving nutrient-use efficiency compared with surface-applied litter, increasing crop yields (possibly by retaining more nitrogen in the soil), and decreasing nutrient losses, often to near background (control plot) levels. A paired-watershed study showed that cumulative phosphorus losses in runoff from continuously grazed perennial pastures were decreased by 55% over a 3-yr period if the annual poultry litter applications were subsurface applied rather than surface broadcast. Results highlight opportunities and challenges for commercial adoption of subsurface poultry litter application in pasture and no-till systems.     

LAND USE AND STREAMWATER NITRATE-N DYNAMICS IN AN URBAN-RURAL FRINGE WATERSHED1

ABSTRACT: Agricultural and residential activities are key non-point sources of nitrogen pollution in urban-rural fringe areas. A GIS-based watershed approach was used to compare land use indicators (septic system and animal unit densities), to streamwater nitrate-N in the Salmon River near Vancouver, B.C., Canada. The density of septic systems was used as an indicator of residential development while animal unit density was used as an indicator of the intensity of agricultural activity. Nitrate-nitrogen (nitrate-N) concentrations as high as 7.1 mg·L^?1 were found in the mid-portion of the watershed during the summer months, when streamflow is low and groundwater comprises a large proportion of water in the stream. The major aquifer supplying water to the midsection of the watershed is contaminated with nitrate-N. A comparison of the relationships between septic system and animal unit density and nitrate-N in the upstream to downstream direction provided evidence that both residential and agricultural activities contribute to elevated nitrate-N in the Salmon River mainstem. In contrast, only septic system density corresponded to the pattern of streamwater nitrate-N in Coghlan Creek, the main tributary to the Salmon River.     

MODELING ACTUAL EVAPOTRANSPIRATION FROM FORESTED WATERSHEDS ACROSS THE SOUTHEASTERN UNITED STATES1

ABSTRACT: About 50 to 80 percent of precipitation in the southeastern United States returns to the atmosphere by evapotranspiration. As evapotranspiration is a major component in the forest water balances, accurately quantifying it is critical to predicting the effects of forest management and global change on water, sediment, and nutrient yield from forested watersheds. However, direct measurement of forest evapotranspiration on a large basin or a regional scale is not possible. The objectives of this study were to develop an empirical model to estimate long‐term annual actual evapotranspiration (ART) for forested watersheds and to quantify spatial AET patterns across the southeast. A geographic information system (GIS) database including land cover, daily streamflow, and climate was developed using long term experimental and monitoring data from 39 forested watersheds across the region. Using the stepwise selection method implemented in a statistical modeling package, a long term annual AET model was constructed. The final multivariate linear model includes four independent variables—annual precipitation, watershed latitude, watershed elevation, and percentage of forest coverage. The model has an adjusted R² of 0.794 and is sufficient to predict long term annual ART for forested watersheds across the southeastern United States. The model developed by this study may be used to examine the spatial variability of water availability, estimate annual water loss from mesoscale watersheds, and project potential water yield change due to forest cover change.     

An Open Source GIS‐Based Decision Support System for Watershed Evaluation of Best Management Practices

Economic costs, water quantity/quality benefits, and cost effectiveness of agricultural best management practices (BMPs) at a watershed scale are increasingly examined using integrated economic‐hydrologic models. However, these models are typically complex and not user‐friendly for examining the effects of various BMP scenarios. In this study, an open source geographic information system (GIS)‐based decision support system (DSS), named the watershed evaluation of BMPs (WEBs), was developed for creating BMP scenarios and simulating economic costs and water quantity/quality benefits at farm field, subbasin, and watershed scales. This DSS or WEBs interface integrated a farm economic model, the Soil and Water Assessment Tool (SWAT), and an optimization model within Whitebox Geospatial Analysis Tools (GAT), an open source GIS software. The DSS was applied to the 14.3‐km² Gully Creek watershed, a coastal watershed in southern Ontario, Canada that drains directly into Lake Huron. BMPs that were evaluated included conservation tillage, nutrient management, cover crop, and water and sediment control basins. In addition to assessing economic costs, water quantity/quality benefits, and cost effectiveness of BMPs, the DSS can be also used to examine prioritized BMP types/locations and corresponding economic and water quantity/quality tradeoffs in the study watershed based on environmental targets or budget constraints. Further developments of the DSS including interface transfer to other watersheds are also discussed. Editor's note : This paper is part of the featured series on SWAT Applications for Emerging Hydrologic and Water Quality Challenges. See the February 2017 issue for the introduction and background to the series.     

NITROGEN AND ORGANIC MATTER LOSSES IN NO‐TILL CORN CROPPING SYSTEMS1

ABSTRACT: Intensive cropping systems based on mechanical movement of soil have induced land degradation in most agricultural areas due to soil erosion and soil fertility losses. Thus, farmers have been increasing fertilization rates to maintain an economically competitive crop yield. This practice has resulted in water quality degradation and lake eutrophication in many agricultural watersheds. Research was conducted in the Patzcuaro watershed in central Mexico to develop appropriate technology that prevents nonpoint source pollution from fertilizers. Organic matter (OM) and nitrogen (N) losses in runoff and nitrate (NO₃‐N) percolation in Andisols with corn under conventional till (CT) and no‐till (NT) treatments using variable percentages of crop residue as soil cover were investigated for steep‐slope agriculture. USLE type runoff plots were used to collect water runoff, while suction tubes with porous caps at 30, 60, and 90 cm depth were used to sample soil water solutes for NO₃‐N analyses. Results indicated a significant reduction of N and OM losses in runoff as residue cover increased in the NT treatments. Inorganic N in runoff was 25 kg/ha for NT without residue cover (NT‐0) and 6 kg/ha for the NT with 100 percent residue cover (NT‐100). Organic matter losses in runoff were 157 and 24 kg/ha for the NT‐0 and NT‐100 treatments, respectively. Nitrate‐N percolation was evident in CT and NT with 100 percent residue cover (NT‐100). However, NT‐100 had higher NO₃‐N concentration at the root zone, suggesting the possibility of reducing fertilization rates with the use of NT treatments.     

Controls on Nutrients Across a Prairie Stream Watershed: Land Use and Riparian Cover Effects

Nutrient inputs generally are increased by human-induced land use changes and can lead to eutrophication and impairment of surface waters. Understanding the scale at which land use influences nutrient loading is necessary for the development of management practices and policies that improve water quality. The authors assessed the relationships between land use and stream nutrients in a prairie watershed dominated by intermittent stream flow in the first-order higher elevation reaches. Total nitrogen, nitrate, and phosphorus concentrations were greater in tributaries occupying the lower portions of the watershed, closely mirroring the increased density of row crop agriculture from headwaters to lower-elevation alluvial areas. Land cover classified at three spatial scales in each sub-basin above sampling sites (riparian in the entire catchment, catchment land cover, and riparian across the 2 km upstream) was highly correlated with variation in both total nitrogen (r² = 53%, 52%, and 49%, respectively) and nitrate (r² = 69%, 65%, and 56%, respectively) concentrations among sites. However, phosphorus concentrations were not significantly associated with riparian or catchment land cover classes at any spatial scale. Separating land use from riparian cover in the entire watershed was difficult, but riparian cover was most closely correlated with in-stream nutrient concentrations. By controlling for land cover, a significant correlation of riparian cover for the 2 km above the sampling site with in-stream nutrient concentrations could be established. Surprisingly, land use in the entire watershed, including small intermittent streams, had a large influence on average downstream water quality although the headwater streams were not flowing for a substantial portion of the year. This suggests that nutrient criteria may not be met only by managing permanently flowing streams.     

Freeze-thaw effects on phosphorus loss in runoff from manured and catch-cropped soils

Concern over nonpoint source P losses from agricultural lands to surface waters in frigid climates has focused attention on the role of freezing and thawing on P loss from catch crops (cover crops). This study evaluated the effect of freezing and thawing on the fate of P in bare soils, soils mixed with dairy manure, and soils with an established catch crop of annual ryegrass (Lolium multiflorum L.). Experiments were conducted to evaluate changes in P runoff from packed soil boxes (100 by 20 by 5 cm) and P leaching from intact soil columns (30 cm deep). Before freezing and thawing, total P (TP) in runoff from catch-cropped soils was lower than from manured and bare soils due to lower erosion. Repeated freezing and thawing significantly increased water-extractable P (WEP) from catch crop biomass and resulted in significantly elevated concentrations of dissolved P in runoff (9.7 mg L(-1)) compared with manured (0.18 mg L(-1)) and bare soils (0.14 mg L(-1)). Catch crop WEP was strongly correlated with the number of freeze-thaw cycles. Freezing and thawing did not change the WEP of soils mixed with manures, nor were differences observed in subsurface losses of P between catch-cropped and bare soils before or after manure application. This study illustrates the trade-offs of establishing catch crops in frigid climates, which can enhance P uptake by biomass and reduce erosion potential but increase dissolved P runoff.     

Evaluation of cover crop and reduced cultivation for reducing nitrate leaching in Ireland

Nitrate (NO(3)) loss from arable systems to surface and groundwater has attracted considerable attention in recent years in Ireland. Little information exists under Irish conditions, which are wet and temperate, on the effects of winter cover crops and different tillage techniques on NO(3) leaching. This study investigated the efficacy of such practices in reducing NO(3) leaching from a spring barley (Hordeum vulgare L.) system in the Barrow River valley, southeast Ireland. The study compared the effect of two tillage systems (plow-based tillage and noninversion tillage) and two over-winter alternatives (no vegetative cover and a mustard cover crop) on soil solution NO(3) concentrations at 90 cm depth over two winter drainage seasons (2003/04 and 2004/05). Soil samples were taken and analyzed for inorganic N. During both years of the study, the use of a mustard cover crop significantly reduced NO(3) losses for the plowed and reduced cultivation treatments. Mean soil solution NO(3) concentrations were between 38 and 70% lower when a cover crop was used, and total N load lost over the winter was between 18 and 83% lower. Results from this study highlight the importance of drainage volume and winter temperatures on NO(3) concentrations in soil solution and overall N load lost. It is suggested that cover crops will be of particular value in reducing NO(3) loss in temperate regions with mild winters, where winter N mineralization is important and high winter temperatures favor a long growing season.     

Rye cover crop and gamagrass strip effects on NO3 concentration and load in tile drainage

A significant portion of the NO3 from agricultural fields that contaminates surface waters in the Midwest Corn Belt is transported to streams or rivers by subsurface drainage systems or "tiles." Previous research has shown that N fertilizer management alone is not sufficient for reducing NO3 concentrations in subsurface drainage to acceptable levels; therefore, additional approaches need to be devised. We compared two cropping system modifications for NO3 concentration and load in subsurface drainage water for a no-till corn (Zea mays L.)-soybean (Glycine max [L.] Merr.) management system. In one treatment, eastern gamagrass (Tripsacum dactyloides L.) was grown in permanent 3.05-m-wide strips above the tiles. For the second treatment, a rye (Secale cereale L.) winter cover crop was seeded over the entire plot area each year near harvest and chemically killed before planting the following spring. Twelve 30.5x42.7-m subsurface-drained field plots were established in 1999 with an automated system for measuring tile flow and collecting flow-weighted samples. Both treatments and a control were initiated in 2000 and replicated four times. Full establishment of both treatments did not occur until fall 2001 because of dry conditions. Treatment comparisons were conducted from 2002 through 2005. The rye cover crop treatment significantly reduced subsurface drainage water flow-weighted NO3 concentrations and NO3 loads in all 4 yr. The rye cover crop treatment did not significantly reduce cumulative annual drainage. Averaged over 4 yr, the rye cover crop reduced flow-weighted NO3 concentrations by 59% and loads by 61%. The gamagrass strips did not significantly reduce cumulative drainage, the average annual flow-weighted NO3 concentrations, or cumulative NO3 loads averaged over the 4 yr. Rye winter cover crops grown after corn and soybean have the potential to reduce the NO3 concentrations and loads delivered to surface waters by subsurface drainage systems.     

WATERSHED AND LAKE WATER QUALITY ASSESSMENT: AN INTEGRATED MODELING APPROACH1

Watershed planning groups and action agencies seek to understand how lake water quality responds to changes in watershed management. This study developed and demonstrated the applicability of an integrated modeling approach for providing this information. An integrated model linking watershed conditions to water-quality of the receiving lake incorporated the following components: (1) an event-based AGNPS model to estimate watershed pollutant losses; (2) annualization of AGNPS results to produce annual lake pollutant loadings; (3) a base flow separation package, SAM, to estimate base flow; (4) estimates of nutrients in base flow and point sources; and (5) linkage of watershed loadings directly to EUTROMOD lake water quality algorithms. Results are presented for Melvern Lake, a 28-km² multipurpose reservoir with a 900-km² agricultural watershed in east central Kansas. Reasonable estimates of current lake quality were attained using an average phosphorus availability factor of 31 percent to calibrate model results to measured in-lake phosphorus. Comparison of a range of possible scenarios, including all cropland changed to no-till (best case) and all CRP and good-condition grasslands changed to cropland (worst case), indicated only a (4 percent change for in-lake phosphorus and a (2 percent change for chlorophyll a. These results indicated that this watershed is not sensitive to projected changes in land use and management.     

COMPARATIVE EVALUATION OF LAND COVER DATA SOURCES FOR EROSION PREDICTION1

ABSTRACT: A fundamental problem in protecting surface drinking water supplies is the identification of sites highly susceptible to soil erosion and other forms of nonpoint source (NPS) pollution. The New York City Department of Environmental Protection is trying to identify erodible sites as part of a program aimed at avoiding costly filtration. New York City's 2,000 square mile watershed system is well suited for analysis with geographic information systems (GIS); an increasingly important tool to determine the spatial distribution of sensitive NPS pollution areas. This study used a GIS to compare three land cover sources for input into the Modified Universal Soil Loss Equation (MUSLE), a model estimating soil loss from rangeland and forests, for a tributary watershed within New York City's water supply system. Sources included both conventional data (aerial photography) and Landsat data (MSS and TM images). Although land cover classifications varied significantly across these sources, location-specific and aggregate watershed predictions of the MUSLE were very similar. We conclude that using Landsat TM imagery with a hybrid classification algorithm provides a rapid, objective means of developing large area land cover databases for use in the MUSLE, thus presenting an attractive alternative to photo interpretation.     

A Gis‐Based Approach to Watershed Classification for Nebraska Reservoirs1

Abstract: The U.S. Environmental Protection Agency is charged with establishing standards and criteria for assessing lake water quality. It is, however, increasingly evident that a single set of national water quality standards that do not take into account regional hydrogeologic and ecological differences will not be viable as lakes clearly have different inherent capacities to meet such standards. We demonstrate a GIS‐based watershed classification strategy for identifying groups of Nebraska reservoirs that have similar potential capacity to attain a certain level of water quality standard. A preliminary cluster analysis of 78 reservoirs was performed to determine the potential number of Nebraska reservoir groups. Subsequently, a Classification Trees method was used to refine number of classes, describe the structure of reservoir watershed classes, and to develop a predictive model that relates watershed conditions to reservoir classes. Results suggest that Nebraska reservoirs can be represented by nine classes and that soil organic matter content in the watershed is the most important single variable for segregating the reservoirs. The cross‐validation prediction error rate of the Classification Tree model was 26.3%. Because all geospatial data used in this work are available nationally, the method could be adopted throughout the U.S. Hence, this GIS‐based watershed classification approach could provide water resources managers an effective decision‐support tool in managing reservoir water quality.     

BENEFITS OF TRANSFERRING STREAMFLOW PRIORITY FROM AGRICULTURAL TO NON-AGRICULTURAL USE1

ABSTRACT: In Virginia, as in many states, priority to streamflow is held by riparian landowners who are predominantly agricultural users. The streamfiow may also have a high potential value to non-agricultural users who do not have riparian rights. The potential benefits of transferring streamfiow priority rights from agricultural to non-agricultural use were evaluated using simulation for an eastern Virginia watershed. Lowering irrigators' priority to streamflow reduced crop yields and irrigated returns in some years because of inadequate water supplies. However, the transfer of priorities increased the likelihood that the urban reservoir would be able to withdraw water from the stream without interruption. As a result, priority trades reduced the size of reservoir needed to meet a given water requirement by municipal users. The resulting savings in reservoir construction and maintenance costs more than offset the losses to irrigators. Net savings could be achieved even if the reservoir were required to release water periodically to maintain a minimum level of instream flow. The conclusion is that the state should encourage trading of access to streamflow in order to increase the use efficiency of streamfiows. Alternative means by which the state can facilitate water exchanges are discussed.