Water demand in a viable economy tends to be dynamic: it changes over time in response to growth, drought, and social policy. Institutional capacity to re-allocate water between users and uses under stress from multiple sources is a key concern. Climate change threatens to add to those stresses in snowmelt systems by changing the timing of runoff and possibly increasing the severity and duration of drought. This article examines Snake and Klamath River institutions for their ability to resolve conflict induced by demand growth, drought, and environmental constraints on water use.

This paper uses the hedonic price method to estimate the value of an acre-foot of irrigation water in Douglas County, Oregon. The analysis uses detailed information from 113 arms-length transactions of farmland for 2000 and 2001. The estimated willingness-to-accept of $261 to sell an acre-foot of irrigation water is consistent with other studies and recent transactions in the study area. Estimates for the value of leasing water are provided using a range of discount rates and leasing periods.