MANAGING THE COLORADO-RIVER IN A SEVERE SUSTAINED DROUGHT - AN EVALUATION OF INSTITUTIONAL OPTIONS

This paper presents a summary of the findings and recommendations of t he studies of severe, sustained drought reported in this special issue . The management facilities and institutions were found to be effectiv e in protecting consumptive water users against drought, but much less effective in protecting nonconsumptive uses. Changes in intrastate wa ter management were found to be effective in reducing the monetary val ue of damages, through reallocating shortages to low-valued uses, whil e only water banking and water marketing, among the possible interstat e rule changes, were similarly effective. Players representing the bas in states and the federal government in three gaming experiments were unable to agree upon and effect major changes in operating rules. The conclusions are (1) that nonconsumptive water uses are highly vulnerab le to drought, (2) that consumptive uses are well-protected, (3) that drought risk is greatest in the Upper Basin, (4) that the Lower Basin suffers from chronic water shortage but bears little drought risk, (5) that opportunities exist for win-win rule changes, (6) that such role changes are extremely difficult to make, and (7) that intrastate drou ght management is very effective in reducing potential damages.