Factsheet #61
Transfer of water rights through permit exchange centers
#61: Transfer of water rights through permit exchange centers
Description
In exceptional circumstances (e.g. drought), the authority responsible for river basin management can be tasked with buying water rights from concessioners, using public funds, to either sell them to other users or to be used for environmental restoration.
Function
The transfer of water rights can be especially relevant in the case of droughts and water scarcity. The transfer can be limited or unlimited in time. The transfer of water rights relies on price incentives.
Example: Water rights transfers in Spain
In Spain, it is allowed that, under exceptional circumstances such as drought, river basin organisations use public funds to acquire water rights from concessioners. Moreover, the organisations are allowed to sell these water rights to users, or to use them directly for purposes of environmental restoration.