Variable Irrigation District Action in Water Trading

Irrigation districts (IDs) in the American west are highly diverse in their economic attributes and local water scarcity circumstances. This diversity may affect reallocative action via water transactions as scarcity rises. The institutional background defining and constraining IDs is described here. For a Texas study region the progress of permanent water right transfers involving IDs is documented and examined. An econometric analysis of multiple decades of ID water transfer activities in the Lower Rio Grande Valley finds that IDs with larger initial water right holdings and higher populations in nearby cities are more likely to participate in agricultural‐to‐municipal water transfer activities. The findings suggest that consolidation of smaller water right holding IDs may be an avenue for quickening the pace of reallocation, especially in more populated areas.