Overview
To identify water marketing principles and develop Statewide Water Marketing Strategies, Utah conducted four Pilot Projects to test the Water Banking Act and identify water marketing alternatives. The pilot areas were selected based on local interest and each reflected the unique conditions of the area.
Overall, each of the Pilot Project efforts was extremely successful, with two water banks being formed and approved, the establishment of a late season lease pool, and the identification and installation of critical infrastructure to facilitate future leasing. From the lessons learned during the process, Utah was able to derive the Statewide Water Marketing Strategies and materials found here.
Cache County: Two-Party Late Season Lease Pool Contract | Price River: | Snyderville / East Canyon Creek: | Uintah Basin: First Water Bank of Utah (Statutory Water Bank) |
Background. The Cache Water District identified water marketing strategies as a potential tool to address local issues such as inadequate late-season irrigation water, growth within ditch systems, and scattered water owners. The district was interested in coordinating meetings to explore water banking and water marketing alternatives.
| Background. Two environmental NGOs have been actively developing water leasing projects in the Price River Basin to benefit instream flows. The NGOs had previously partnered with the Carbon Canal Co. and its shareholders on several projects. They wanted to test the water banking structure as a new means of securing instream flows. Discussions resulted in the first ever approved contract water bank in the state of Utah. | Background. Various stakeholders, including environmental NGOs, a municipal sewer district, and local municipalities wanted to use water banking to improve instream flows in East Canyon Creek during critical low flows in late summer. | Background. Various stakeholders in the Uintah Basin wanted increased ability to conserve and improve delivery of water. The desert climate and basin’s unique topography required a comprehensive water management strategy.
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Lessons learned
- Shop for Best Fit: Consider multiple water marketing methods when addressing a local water need; identify which methods best address the needs of the local participants.
- Be Clear on Purpose: Defining the needs of water users should come first. Local conditions will dictate the form of and participation in water banks.
- Someone Needs to Lead: Having an engaged and local champion is invaluable in setting up water markets.
- People Want to Know: Outreach and education are critical and might require significant resources. Stakeholder engagement should be early and often.
- Welcome Support: Resources from state agencies are available and grant funding may be available to support setting up a water bank.
- Is it Worth the Effort? The effectiveness and return on investment of a Utah Water Bank should be monitored and compared to other transaction mechanisms.
- Pick the Easy Route: Establishing a lease program or local market is significantly streamlined if the source water rights have flexibility in use and formal change applications do not have to be filed with state agencies.
- Large Group Consensus is Challenging: The success and speed of negotiations can be improved by empowering a limited number of representatives to negotiate on behalf of contracting parties.
- Don’t Study it to Death: Technical studies are important to understand water bank operations and useful when seeking regulatory approval. However “analysis-paralysis” should be avoided.
- Have Fun: Water is complicated and can be contentious. Try to foster an environment of creativity and community in your discussions. Approach the task as a group effort looking to address common challenges.
More information on Utah water marketing can be found from our Water Marketing main page.
If you have questions or need further information, please email WaterMarketing@utah.gov.