Increasing water withdrawals for urban, industrial, and agricultural use have profoundly altered the hydrology of many major rivers worldwide. Coupled with degradation of water quality, low flows have induced severe environmental degradation and water has been rendered unusable by downstream users. When supply of water falls short of commitments to fulfil demand in terms of water quality and quantity within the basin and at the river mouth, for part or all of the year, basins are said to be closing.

Water marketing is often cited as a means of alleviating the stresses attached to allocation of water use. Frequently, marketing is suggested in a context that implies substitution of competitive markets for the allocation based on the prior appropriation doctrine. This study examines water marketing from the perspective of a transactions cost approach to the private and broad social agreements (contracts) that support water allocation. It examines the major behavioral challenges faced by any contract, and the alternative approaches to those challenges, with respect to water allocation.

As concerns heighten over links between biomass production and land grabs in the global south, attention is turning to understanding the role of governance of biofuels systems, whereby decision-making and conduct are not solely determined through government regulations but increasingly shaped by non-state actors, including multi-stakeholder initiatives (MSI). Launched in 2005, Bonsucro is the principal MSI that focuses on sustainability standards for sugar and sugarcane ethanol production.

Most theorists regard transaction costs as one of the key lenses to understand the water rights market. This paper proposes a theoretical model of water rights trading with transaction costs according to the idea of costs minimization. Applying the model to the Yellow River Basin (YRB), we evaluate the potential of investment savings from introducing the trans-jurisdictional water market to achieve the water-saving targets of agricultural and industrial sectors.

In Afghanistan, where 80% of the population is rural, irrigated agriculture using surface water is an extremely important economic activity. With the advent of the New Water Law, highly localized and centuries-old agricultural water management traditions are giving way to more modern centralized institutions. The newly-created river basin councils need management tools to support decision-making at the watershed level.