Drivers and barriers to water transfer in a New Zealand irrigation scheme

Policy makers, economists and water researchers have advocated water transfer and trade as a key potential response to worldwide water scarcity and/or efficiency problems. This paper examines aspects of an operational irrigation scheme in New Zealand that enables transfer of water between shareholders, arguing that the set-up and processes involved with the scheme can provide a wider context for analysis and consideration of social and cultural issues involved with resource allocation. Analysis of the key drivers and barriers for water reveal that while there is potential for real benefits from transferring water for farmers and the community, an examination of some of the processes used, and barriers to transfer reveals important lessons for planning and regulatory perspectives, including the importance of looking at the issues from a procedural and distributive justice viewpoint.