The role of institutional arrangements for more efficient water resources use and allocation

Water resources management requires an interdisciplinary approach to meet the challenges posed by ever increasing water demand and pollution. This paper discusses in which way appropriate institutional arrangements are complementary to technical interventions that aim to increase more efficient water use and allocation. Specific emphasis is given to water property rights as one of the determining factors in regard to the institutional framework. Issues such as the range of flexibility in designing property rights to water, the implications for pricing, enforcement and sanctioning mechanisms as well as for water trading and information needs are highlighted.