Because of large upstream diversions for agriculture and an absence of
policies to protect in-stream flows, flows in the Rio Grande near Tao
s, New Mexico, routinely are low by midsummer, The reach is a popular
whitewater run in the southwestern United States when flows are adequa
te for river running. This article estimates the regional economic imp
acts attributable to summer streamflow depletions. Economic analysis i
ndicates that while lower water levels affect the number of people com
ing to the region to raft on one river reach, low water levels had no
effect on another nearby rafting area. Total expenditures and economic
impacts were simulated for streamflows maintained at levels adequate
for whitewater recreation throughout the summer season. These simulati
ons indicate a 24% ($0.74 million) increase in rafting-linked expendit
ures and a 25% ($0.94 million) increase in value added from rafting, c
ompared to actual 1992 expenditures and value added.