Leveraging hydrologic accounting and water markets for improvedwater management: The case for a central clearinghouse

Abstract

Effective management of water resources requires signaling the scarcity value of water to society. However, accurate signaling is often limited by incomplete and/or untimely accounting of hydrologic stores and flows of water. In this opinion piece, we advocate an incisive yet conceptually simple framework for transparent, real-time accounting of water stores and flows, including both groundwater and surface water, to inform water markets organized around a central clearinghouse. This framework promotes forthright collaboration among disciplines to improve system efficiency and increase water-management transparency. We use California water management as an example for the potential for a central clearinghouse framework that has proven so beneficial to transparency of energy markets in that region.