The economic impact of reducing the amount of nitrate leached out of t
he root zone under irrigation in the arid West was examined. The econo
mic incentives of irrigation management were evaluated under the assum
ptions of both profit-maximizing and utility-maximizing (in reducing c
ost and effort expended in irrigation) decision-making criteria. The r
esults indicate that there is a coincidence of interests of the farmer
and the environment provided some leaching occurred. If no leaching i
s allowed, profit decreases markedly. Both behaviors result in less ni
trate leaching than less profitable or less utility-producing irrigati
ng practices.