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This property

flow under gravity or pressure, surface

feet of water. Any part of the rights conveyed

boundaries no longer delineate the quantita-

by those deeds could be bought, sold,

rights system

tive extent of the resource and no longer

assigned, or bequeathed by contracts separa-

could be applied

define exclusion. What is needed in these

ble from contracts for the transfer of real

to a common

cases is a property right defined in units of

property. Water deed transfers could be

the resource itself. This principle has already

recorded in county or water authority records

property lake or

been applied to cattle, parakeets, and dogs;

in the same manner as transfers of real prop-

ocean fishery in

but fish, water, and oil seem destined to take

erty. That would allow existing institutional

a little longer.

procedures that have stood the test of time to

which it is feasi-

In many cases, it is feasible to create deed-

be extended to water rights. Water deed

ble to estimate

ed rights to migratory resources. Consider,

prices would be freely negotiable to facilitate

the stock of fish

for example, the water supply for Tucson,

a continuous market in rights to draw on the

Arizona. The city is located in a basin con-

existing stock of water. All pumps would be

and meter the

taining a natural subsurface aquifer estimat-

metered on farms, ranches, mines, factories,

catch.

ed to hold 20 million to 40 million acre-feet

or municipalities, as is now the case for met-

of water. All of Tucson's water is pumped

ropolitan area residences. Each user would

from deep wells drilled into this aquifer.

receive a monthly bill for the cost of pump-

According to 1975 estimates, the natural

ing, distribution, and management (exclud-

recharge rate was 75,000 acre-feet per year

ing private well owners who bear this cost

and the consumption rate was about 225,000

directly) and a monthly bill denominated in

acre-feet per year.6 4 Anyone with a surface

fractions of an acre-foot of deed certificates

right to land has been free to drill into this

to be surrendered for all water consumed

water supply and start pumping. In addition

(including that taken from private wells).

to city and county water authority wells, indi-

Every few years, depending on cost, the

vidual residences; the University of Arizona;

recharge of water to the aquifer could be esti-

and surrounding farms, horse ranches, man-

mated, or perhaps the aquifer stock reesti-

ufacturers, and mining companies own pri-

mated, and the outstanding stock of deed

vate wells that pump from this common

certificates adjusted by a stock dividend to

water stock. Periodically, these wells have to

maintain equality between the stock of water

be deepened as the water level declines. The

and total claims on water. Alternatively, and

city and county water authorities charge only

perhaps more simply, one could adjust the

for the cost of drilling, pumping, distribut-

redemption exchange rate for deed certifi-

ing, and managing this water system. The

cates. For example, if after 10 years the

water itself is free.

aquifer had experienced an 11 percent

To establish property rights to ground

increase in inventory, then the redemption

water, we propose that the county issue water

charge would be reduced so that the con-

deed certificates for 30 million acre-feet of

sumption of 10 acre-feet of water would

water.65 Those deeds could be issued in pro-

require the surrender of only nine acre-feet of

deed certificates. In this way, the exchange

portion to the surface area held by landown-

rate between certificates and metered water

ers but with adjustments for land used for

use could be adjusted to balance the demand

residences, irrigated agriculture, mining, and

for and supply of water as an asset.

industry. If feasible, adjustments could be

This property rights system could also be

made in proportion to a base period rate of

applied to a common property lake or ocean

water consumption. The objective would be

fishery in which it is feasible to estimate the

to recognize squatters' rights to water, since

stock of fish and meter the catch. Fishermen

the price of land has already capitalized the

would own deeds to live fish, which would be

right to pump water freely.

surrendered as the fish were harvested, and

Deeds could be issued in convenient

would be free to use any technology (now

denominations of 1, 5, 10, or fractional acre-

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