ALLOCATION OF WATER USE RIGHTS IN IRRIGATED AGRICULTURE: EXPERIENCE WITH DESIGNING INSTITUTIONS AND FACILITATING MARKET PROCESSES IN SOUTH AFRICA

摘要

Irrigated agriculture uses the biggest share of surface and underground water resources for foodrnproduction in local and export markets. Given the competing demands from domestic andrnindustrial uses, economic pressures exist to increase the efficient allocation and conservation ofrnwater. A political-economic analysis found that institutional change is required to establishrncorrect incentives and effective market processes. This change was brought about by acceptancernof a constitution and promulgation of a new national water act. In the democratic political order,rneveryone now has the constitutional right of access to sufficient water. The obligation rests onrnthe government to take reasonable measures within available resources for progressivernrealization of these rights. This is done through water allocation reform and implementation ofrnthe national water resource strategy. It involves compulsory licensing of water use for irrigationrnto achieve an equitable initial apportionment of water use rights. Water conservation and demandrnmanagement measures are further being implemented to increase the efficiency of water use andrnthe re-allocation of water entitlements from lower to higher valued uses within or betweenrndifferent economic sectors. The legal framework has created conditions which enable marketrntrades of water use rights. Substantial market transactions have been recorded, with most of theserntrades occurring in irrigation areas along the Orange River. Indications are that the marketrnprocess provides opportunities for the more efficient use of water. Based on investigations ofrnthese transactions, institutional requirements are specified which will improve the performancernof market transfers of water use rights.