Technology for trade: adapting information technology and institutions to improve water use for agriculture

Reallocation is an important process for ensuring that water resources are applied to high value uses both within agriculture and across competing uses. Water markets are increasingly being used in the western United States to facilitate water reallocation, but are often hindered by multiple information-related constraints and transaction costs which limit its effectiveness. We present here on research geared towards mitigating these information-related constraints and costs through the use of three synergistic emerging technologies: improved seasonal water forecasting, automated consumptive use monitoring, and "smart" markets for leasing and trading water. Current efforts have been aimed at identifying ways to link and improve these technologies to make them more directly useful to water users, regulators, and stakeholders. At the same time, our team is also assessing how existing management institutions are hindering or supporting the adoption or adaption of these focal technologies for improving water use and its economic benefits.