What is a water market? It is a potential economic solution to water scarcity in which economists assign a value to water usage under the premise that when something has a dollar value, people are more likely to conserve it.
Water markets function like the stock market or carbon trading where usage rights and quantities within a watershed can be traded among voluntary stakeholders. They can help water managers plan for sustainable resource use by negating the need to bring water from far off sources into a watershed or service area. [Inhabit]