WATER BANKING

A water conservation and use optimization system whereby water is reallocated for current use or stored for later use. Water banking may be a means of handling surplus water resources and may involve aquifer recharge or similar means of storage. Typically, under such arrangements, an agency is created with the authority to purchase, sell, hold, and transfer water and water rights in addition to serving as a negotiator between buyers and sellers. In its broadest sense, all water rights would be covered under such water banking arrangements to include surface water, groundwater, treated wastewater effluent, and irrigation tailwater. Generally, participants in water banking arrangements will have their water rights protected from cancellation (non-beneficial use) for a specific period so long as their water is "deposited" in the water bank. Also see Water Marketing.