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Policy Brief

Policy Brief: Improving California’s Water Market

By Andrew Ayres, Ellen Hanak, Brian Gray, Gokce Sencan ...

This policy brief distills key takeaways from our report on water trading and banking in California, and how they will help the state bring its groundwater basins into balance under the Sustainable Groundwater Management Act (SGMA). A broad range of policy changes could improve and expand California’s water market while protecting communities from harm.

Report

What If California’s Drought Continues?

By Ellen Hanak, Jay Lund, Jeffrey Mount, Peter Moyle ...

California is in the fourth year of a severe, hot drought—the kind that is increasingly likely as the climate warms. Although no sector has been untouched, impacts so far have varied greatly, reflecting different levels of drought preparedness. Urban areas are in the best shape, thanks to sustained investments in diversified water portfolios and conservation. Farmers are more vulnerable, but they are also adapting. The greatest vulnerabilities are in some low-income rural communities where wells are running dry and in California’s wetlands, rivers, and forests, where the state’s iconic biodiversity is under extreme threat. Two to three more years of drought will increase challenges in all areas and require continued—and likely increasingly difficult—adaptations. Emergency programs will need to be significantly expanded to get drinking water to rural residents and to prevent major losses of waterbirds and extinctions of numerous native fish species, including most salmon runs. California also needs to start a longer-term effort to build drought resilience in the most vulnerable areas.

Report

Allocating California’s Water: Directions for Reform

By Brian Gray, Ellen Hanak, Richard Frank, Richard Howitt ...

California’s water allocation system hampers its ability to meet the state’s needs, especially in times of drought. At its heart is an unusually complex array of water rights. This report summarizes challenges and suggests reforms to strengthen the state’s ability to weather droughts and shifting economic demands for water, while maintaining the existing seniority of water rights.

Read a summary of the report’s policy recommendations.

This research was supported with funding from the S. D. Bechtel, Jr. Foundation.

blog post

Water in 2021: Looking Back on a Year of Extremes

By Ellen Hanak

In California, 2021 was the year that climate change hit home. We look back at this year of extremes—and examine how our nonpartisan data and analysis informed conversations about how to address the tough water issues facing the state.

Report

Accounting for California’s Water

By Ellen Hanak, Jay Lund, Brian Gray, Henry McCann

Understanding California’s balance sheet for water—how much there is, who has claims to it, and what is actually being "spent”—is key to effectively managing the state’s limited water supply in support of a healthy economy and environment. This report compares California’s water accounting systems to those of 11 other western states, Australia, and Spain. It identifies gaps in California’s water information systems, and proposes a dozen ways to bridge them.

Read a summary of the report’s policy recommendations.

This research was supported with funding from The David and Lucile Packard Foundation, the S. D. Bechtel, Jr. Foundation, the US Environmental Protection Agency, and the Water Foundation, an initiative of the Resources Legacy Fund.

Report

Water Stress and a Changing San Joaquin Valley

By Ellen Hanak, Jay Lund, Richard Howitt, Peter Moyle ...

The San Joaquin Valley—California’s largest agricultural region and an important contributor to the nation’s food supply—is facing growing water stress and a number of related environmental and public health problems. Large parts of the valley have become dependent on unsustainable pumping of groundwater. Tackling these linked issues with cooperative, coordinated approaches is key to success.

This research was supported with funding from the S. D. Bechtel, Jr. Foundation, the TomKat Foundation, and the US Environmental Protection Agency.

Report

Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market

By Ellen Hanak

Although significant water trading has occurred in California since the drought of the early 1990s, many localities have restricted water transfers because of the perceived harm to other users and the local economy. In Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market, Ellen Hanak examines water transfers in California, local resistance to them, and various approaches to resolving water disputes. Drawing on a new database of water transfers as well as interviews with state, county, and water district officials, the report calls for water management at the local level that balances the interests of other residents and the potential gains from transfers.

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