Water Marketing Strategies Report

<< Back to main water marketing page <<

Utah’s water marketing efforts and goals

For over 175 years, the prior appropriation doctrine has governed water in Utah. This doctrine recognizes private rights to use the public’s water. The prior appropriation doctrine creates stability because it clearly dictates how water is to be used and distributed in times of shortage (priority). The prior appropriation doctrine is also flexible and provides a system for changing water rights to new and different uses. 

Recent studies have identified “water marketing” as a means to incentivize changes in the use of water. Water marketing is generally the act of applying market principles like leasing, buying or selling to balance supply and demand needs. Markets are attractive because they work with the prior appropriation system and provide local control.

To employ the benefits of water marketing, Utah passed the Utah Water Banking Act and funded the development of Statewide Water Marketing Strategies. Derived from four Pilot Projects and stakeholder feedback, Utah has created guides, templates and tools that:

  • Explain general water marketing concepts and principles
  • Organize common water user questions into functional templates 
  • Provide concrete examples of water marketing methods (platforms to bring together interested participants) 
  • Provide concrete examples of water marketing transaction types (contracts and other instruments for organizing terms of transactions) 
  • Help interested participants understand the Utah Water Banking Act and apply to create a water bank 

The goal of this effort is to empower local water users to use market tools to their advantage. To learn more about Utah’s efforts, please review our final Statewide Water Marketing Strategies Report.

Statewide Water Marketing Strategies Report

An overview of the report is now available; check back for the full report soon.

Executive Summary

  • Top 10 Lessons Learned about Water Marketing 
  • Work Completed
  • Water Marketing Milestones
  • Recommendations

Introduction, Need and Impact

  • Purpose and Need
  • Unique Utah

Statewide Water Marketing Strategies and Utah Water Banking Act

  • Starting the Conversation 
  • Development of the Water Banking Concept 
  • The Utah Water Banking Act
  • Statewide Water Marketing Report 2020-2024

Pilot Project Reports

  • Carbon Canal Company Water Bank
  • Snyderville Basin Pilot Project 
  • Cache Valley Pilot Project Area 
  • Other Water Banks and Inquiries

Water Marketing Strategies

  • People: Gather Your People
  • Markets: Finding Purpose
  • Logistics: Turning Concepts into Reality 
  • Transactions: Putting Ink to Paper 
  • Approvals: Playing by the Rules

Tips, Tools and Resources

  • General Water Marketing Resources 
  • Utah Water Banking Act Resources

Statewide Water Marketing Strategies Report Appendices

USBR Grant Requirements Report 

Pilot Project Reports

  • Cache 
  • Snyderville 
  • Price

Tips, Tools and Resources

General Water Marketing Resources

Statewide Water Marketing Strategies Overview: An overview of the goals of water marketing, Statewide Water Marketing Strategies effort, five marketing milestones and application of water marketing to key Utah water priorities. 

Top 10 Lessons Learned: Top 10 Lessons Learned About Water Marketing: An overview of the top ten lessons learned from the Statewide Water Marketing Strategies effort. 

Foundational Questions Document: An interactive step-by-step guide for water users interested in exploring water marketing. Interested water users should print and start with this document when first approaching a water marketing discussion. 

Water Marketing Methods: A matrix describing “how” water markets are organized by summarizing various platforms, structures and methods used to bring together willing lessors and willing lessees, such as bulletin boards or auctions. 

Water Marketing Transaction Types: A matrix describing the various written instruments that record the terms and conditions the parties agree to satisfy and execute a transfer of water, such as annual leases or option contracts. 

Water Valuation Guide: A helpful guide providing general information and considerations informing how participants can value water and set a price for water transactions. 

Contract Water Bank Resources

5 Steps to a Contract Water Bank: A general guidance document that identifies the key steps interested participants need to complete to form, apply for and secure approval of a contract water bank. 

Contract Water Bank Application Guidelines: An internal document division staff uses to prepare a report for the Board of Water Resources when making a recommendation on whether an application is complete and can be approved by the board. Potential applicants can utilize it to ensure they have prepared a complete application. 

Contract Water Bank Application: A fillable PDF form that applicants can complete and submit to the division to begin the board completeness review and approval process for a contract water bank. 

Carbon County Approved Application with Contract: An example of an approved contract water bank. 

Statutory Water Bank Resources

Statutory Water Bank Summary of Tasks and Responsibilities: A document summarizing the required, necessary and optional tasks that are needed to organize a statutory water bank. Utilize with the Statutory Water Bank Participant Assessment. 

Statutory Water Bank Participant Assessment: An interactive assessment that asks participants to assess their expertise, capacity and interest in completing each of the required, necessary and optional tasks needed to establish a statutory water bank. This document helps identify which parties are most appropriate to complete each task and assess the overall interest and ability of the group to establish a statutory water bank. Utilize with the Statutory Water Bank Summary of Tasks and Responsibilities.

Statutory Water Bank Creation and Operation Checklist: This interactive overview provides participants a working checklist of key items and tasks needing to be completed to be ready to submit a complete application to the division and to begin the Board of Water Resources completeness review and approval process. 

Statutory Water Bank Application Guidelines: An internal document division staff uses to prepare a report for the Board of Water Resources when making a recommendation on whether an application is complete and can be approved by the board. Potential applicants can utilize it to ensure they have prepared a complete application. 

Statutory Water Bank Application: A fillable PDF form that applicants can complete and submit to the division to begin the board completeness review and approval process for a statutory water bank. 

First Water Bank of Utah Approved Application: An example of an approved statutory water bank. 

Media

More information on Utah water marketing can be found on our Water Marketing main page.

If you have questions or need further information, please email WaterMarketing@utah.gov.