Agriculture - An Analysis of International Experience
FAO WATER REPORTS 28

FAO WATER REPORTS 28

Water charging in irrigated
agriculture
An analysis of international experience

by
G. Cornish with B. Bosworth
HR Wallingford Ltd
United Kingdom of Great Britain and Northern Ireland
and
C. Perry
Cranfield University, Silsoe
United Kingdom of Great Britain and Northern Ireland
with the collaboration of
J. Burke
FAO Land and Water Development Division


FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

Rome, 2004
 
Table of Contents

Cover photograph:

Extract of ETM plus mosaic N-36-10. Courtesy of
GLFC Earth Science Data Interface hosted by the
University of Maryland, United States of America.

The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

ISBN 92-5-105211-5
ISSN 1020-1203

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© FAO 2004



Contents

Acronyms

Summary

Acknowledgements

1. Introduction

Aim and purpose
Scope and limits
Country case studies
Terms and definitions

Water charges and water charging systems
Water pricing
Cost of water

Types of charging system
The theoretical relationship between volumtric water pricing and demand
The relationship between pricing and tradable water rights
Trends in international policy development
Experience from municipal and industrial water sectors

2. Objectives of irrigation water charging

Service delivery - cost and accountability

To cover service costs and fund adequate maintenance
To improve service delivery

Demand management, improved water allocation and pollution control

Demand management - an incentive for efficient use
Allocating water to highest priority uses
Improving water quality

Social objectives
Summary

3. Pricing methods

Non-volumetric methods
Volumetric methods
Market-based methods
Pricing structures in practice
Summary

4. Linking charging objectives and methods

Introduction
Achieving cost recovery

Improving cost recovery - the role of irrigation management transfer

Demand management and water saving

Case study areas
Volumetric charging in practice

Summary

5. Institutional and organizational issues affecting water charging

Water and land rights
Calculating O&M costs
Who should pay, when, and for what
Government, enforcement and regulatory bodies
Financially unsustainable systems
Making payment
Water pricing and improved irrigation technologies
Resource needs
Terms of trade
Preconditions for achieving effective irrigation charging
Summary

6. Principal findings

Drivers for change
Objectives of charging
Design of a charging system
Effects of charging on water saving
Implementing charging policies
Knowledge gaps

Bibliography

Annexes

Annex 1 Water charging for irrigation - data from the literature
Annex 2 Analysis of irrigation charging objectives and their realization in the case studies

FAO technical papers

Back cover


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