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Most of the world's water entitlement and allocation regimes evolved during periods of abundance and, hence, are not well suited to the management of water scarcity.
Water markets were first introduced in Australia in the 1980s, and water entitlement and allocation trade have been increasingly adopted by both private individuals and governments.
Teesta,4 the decade long contention of India and Bangladesh, is absent from any agreements settling the matter of water entitlement.
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Soon after it was extended to the entire Murray-Darling basin, creating the largest market for water entitlements in the world.
The commercial fund operates to buy water entitlements that can be traded, while also ensuring a portion of the allocation is used to enhance environmental outcomes, such as supplying water to a wetland.
The branch of the environment department responsible for buying back water entitlements for environmental use has transferred to the agriculture department, but the environment minister, Greg Hunt, retains powers for the commonwealth environmental water holder, the body that determines how environmental water is used.
Systems of water entitlements and rules need to achieve a balance between certainty and flexibility.
Although the study focuses on the reform of water entitlements systems in the Australian context, its broad implications are briefly discussed.
A major challenge dominating Australia's water reform agenda is to rationalise the complex and inconsistent water entitlements within and across jurisdictions to facilitate markets.
This article explores the effect of water entitlements and rules, and arrangements to provide certainty and flexibility for the integration of surface water and groundwater management over time.
Integrated cyclical water management requires a comprehensive, flexible and balanced system of water entitlements and rules that allow extended water carryover, water banking, aquifer storage and recovery over the wet and dry climate cycle.
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CEO of Professional Science Editing for Scientists @ prosciediting.com