Transferring water from irrigation to higher valued uses: a case study of the Zhanghe irrigation system in China

The Zhanghe irrigation system (ZIS) is located in the Yangtze River Basin approximately 200 km west of Wuhan in Hubei Province. The reservoir was designed for multiple uses—irrigation, flood control, domestic water supply, industrial use, aquaculture, and hydropower. Over a period of more than 30 years a steadily increasing amount of water has been transferred from irrigation to other uses. Activities on the part of government, irrigation system managers, and farmers made this transfer possible with only modest decline in rice production. Most important factor was the steady increase in rice yields. The water pricing system provided an incentive for ZIS to reduce irrigation releases. With the steady decline in releases, farmers were forced to find ways to save water. Farmers improved existing ponds and built new ones to store water (improved infrastructure). Access to pond water on demand facilitated the adoption of alternate wetting and drying (technology) particularly in dry years. The establishment of volumetric pricing (price policy) and water user associations (institutions) may also have provided incentives for adoption of AWD, but more research is needed to establish their impact. These activities taken together can be seen as potentially complementary measures. Farmers received no direct compensation for the transfer of water, but recently farm taxes have been reduced or altogether abolished. Further reduction in water releases from the ZIS reservoir could adversely affect rice production in normal or dry years.     

Allocating the costs of multi-purpose water resource development: a case study of Chi-Chi Weir in Taiwan

Most multi-purpose water resources have been planned and constructed by governments in Taiwan to meet the water demands of different users. However, economic and solvency differences among parties using water create conflicts regarding the reasonable and equitable allocation of investment and operational costs. The Chi-Chi Weir in Nantou County, which was completed in 2002, meets the high water demand of residents and the needs of industrial growth in central Taiwan. Thus, multi-purpose water reservoirs are designed to serve agriculture, the public and industry. Three analytical methods, the quantity-based method, marginal cost method, and separable cost remaining benefit method (SCRB), are employed to compare the cost allocation for different parties using water. The quantity-based method indicates that proportional costs allocated to agriculture, the public, industry and new irrigated areas are 88.02, 3.63, 7.86, and 0.49%, respectively. Via the marginal cost method, the proportional costs allocated to agriculture, the public, hydropower, industry and new irrigated areas are 68.44, 2.51, 28.71, and 0.34%, respectively. The marginal cost price of water is NT$ 2.97 ton⁻¹; industrial use has the highest price. Based on the SCRB method, the proportional costs allocated to agriculture, the public, hydropower, and new irrigated areas are 18.2, 22.2, 51.8, 4.8, and 2.9%, respectively.