Water Market Plan Aims to Revive River Ecosystem

Colorado River Model to Aid Farms and Native Fish

A new water market approach could offer a solution to the worsening water shortages in the Colorado River basin. This system allows voluntary leasing of water rights to protect both farms and fish.

The Colorado River supplies water to seven U.S. states, 30 tribal nations, and parts of Mexico. However, overuse and ongoing droughts have lowered river flows to their lowest levels in 2,000 years.

Researchers from Stanford and the University of Washington have developed a simulation that demonstrates how trading water through legal markets can protect ecosystems. The study focuses on the river’s headwaters, which supply 25% of the flow to Lake Powell.

“Spending a little bit more money, especially in headwaters, could have outsized ecological impact,” said Philip Womble, lead author of the study.

Under this system, farmers, cities, and irrigation groups can lease their senior water rights. These rights are valuable because they are used first, before junior rights. With legal protections, the saved water can reach critical habitats for fish.

Without reduced water use, 44 of the 49 native fish species in the river basin face extinction. Modeling showed that 380 miles of river could be restored for fish habitat with moderate funding. In contrast, unprotected water markets would cost 12% more and offer less ecological benefit.

Congress has already dedicated $4 billion under the Inflation Reduction Act to fund such drought relief efforts. The proposed system could enhance these investments by focusing on legal protections and strategic flow management.

This innovative model presents a realistic and cost-effective method to secure water for agriculture while also restoring key ecosystems.