From Water Deeply:
“A “use-it-or-lose-it” system of water allocation has historically required growers in California to irrigate their land or lose their water rights, whether market forces compelled them to grow crops or not.
Now, in a significant breakthrough for the state’s water economy, a community of farmers near Ventura are about to join a new groundwater market. The buying and trading system, expected to begin by July 1, will allow farmers under the purview of the Fox Canyon Groundwater Management Agency to fallow their own land and sell groundwater to other users willing to pay more than their crop sales would generate. This small-scale water market has been in planning stages for more than a year and is being launched as a pilot project that could eventually serve as a model for the rest of California. … “
Read more from Water Deeply here: A New Groundwater Market Emerges in California. Are More on the Way?