RESERVOIR WATER LEVEL IMPACTS ON RECREATION,PROPERTY, AND NONUSER VALUES1

ABSTRACT: Wise interbasin management of Southeastern U.S. water resources is important for future development. Alabama‐Coosa‐Tallapoosa and Apalachicola‐Flint‐Chattahoochee River basins' water usage has evolved from power generation to multiple uses. Recreation and housing have become increasingly valuable components. Changing use patterns imply changing resource values. This study focused on six Alabama reservoirs, using contingent valuation questions in on‐site, telephone, and mail surveys to estimate impacts on lakefront property values, recreational expenditures, and preservation values for scenarios of permanent changes to reservoir water quantity. As summer full‐pool duration decreased, lakefront property value decreased, and as duration increased, property values increased, but at a lesser rate. Similar findings occurred for winter draw down alternatives. Permanent one‐foot reductions in summer full‐pool water levels resulted in a 4 to 15 percent decrease in lakefront property values. Recreational expenditures decreased 4 to 30 percent for each one‐foot lowering of reservoir water levels. Current nonusers of the six reservoirs showed strong preferences for protecting study reservoirs with willingness to pay values of 47 per household or approximately 29 million for the entire six‐reservoir watershed basin area. Resource management based on historic use patterns may be inappropriate and more frequent and comprehensive valuation of reservoir resources is needed.