Regulatory Structure, Policies and Process

Regulatory Structure, Policies and Process in Water Law

California water law has experienced three distinct periods of development. First was the initial settlement of California, spurred by the gold rush in the mid-1800s. Next came the era of massive irrigation projects in order to expand and promote agriculture throughout the state, even in arid regions with little rainfall. Finally, continued population growth and increasing concerns over environmental issues have led to the more recent era of California water law, which centers predominantly on the reallocation and management of the state's existing water supply.

Factors having major influence on water management and policy over the past six years have been the 1987-1992 drought, expanding water needs due to growth and increasing recognition of the need for in stream water uses, endangered species considerations, and the increasing difficulty of developing new water supplies, due in large part to environmental restrictions. In response to these problems, water managers are paying added attention to used water transfers, which is an important tool for solving some of California's water supply and allocation problems. Another solution that both policymakers and water users are discovering that can help alleviate water shortages is water markets. Water markets balance supply with demand. Although water markets do not create, new supplies, they reallocate water to make more efficient use of existing supplies, promote water conservation and allow water users to get more out of their supply than they otherwise could.