As surrogates for the economic parameters used in NED and RED accounts, other factors are used to measure EQ resources. These include “institutional recognition,” “public recognition,” environmental “customs and traditions,” and “technical recognition,” meaning the significance as judged based on scientific knowledge or judgment.

The OSE account includes three categories of particular interest in terms of water transfer discussions: community impacts, displacement, and long-term productivity. Community impacts include income and employment distribution with particular reference to minorities and low-income households.

SOURCE: Water Resources Council (1973, 1980).

conducted. Each site was visited either by the full committee or by an assigned subcommittee; the information gathered from the literature and from experts at each site included a brief history of the settlement and water use patterns in the area, a description of the physical and socioeconomic setting, an overview of actual and potential transfer-related activities in the area, and—most importantly—a characterization of the type of transfer and its impacts. The elements of the evaluation strategy fall into three broad categories: transfer characteristics, third party interests, and the nature of third party effects.

Transfer Characteristics

Transfers can be voluntary or involuntary and involve a number of different state and federal procedures. Water transfers vary in type and impacts—and do not necessarily always cause harm to third parties. For the evaluation system used in this report, there are five key types of transfers under which third party effects may arise:

  1. Change in ownership of the water right. In some jurisdictions the change in ownership of a water right or contract entitlement to storage water from a federal reservoir may be treated formally as a transfer. However, a change in ownership alone does not usually lead to third party effects; as long as the water continues to be used for the same purpose at the same location, no third party effects need occur. For example, the purchase of farmland by a city in need of assured water supplies to support future development may or may not entail third party effects. In some cases, the city will hold the



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