Assessing the Formation of Local and Regional Water Markets in the Torshiz Plain

Water is an important factor in the economic development of any country. Therefore, it is necessary to plan for optimal use of water resources and economic allocation of this resource for different uses (Tajrishi & Abrishamchi, 2004). Over the past decades, the increasing use of water resources and the low efficiency of its consumption have caused many environmental concerns. Water markets are an economic instrument that can be used to increase decentralization, optimize the allocation of water resources among consumers, and reduce the effects of water scarcity. Accordingly, water markets are mainly characterized by their capability to reallocate water for different uses so that this allocation is welcomed by those who designate higher potential values of water and naturally, derive more rational utilization of water resources in their own consumption (Badie Barzin et al., 2018). Given the importance of water, our research objective was to assess the effects of local and regional water markets in the Torshiz region. Data were collected without sampling at the level of cultivating certain crops including agricultural production, production costs, and inputs. Crop prices were provided by the Agricultural Jihad Organization of Khorasan Razavi Province, and the data on the demanded water products and all available water resources were provided by the District Water Company of Khorasan Razavi province. Howitt et al. (2015) studied the effects of drought on agricultural production in different parts of California and evaluated the role of local water markets in this area. The results showed that drought had a negative effect on not only the volume of surface water resources but also the depth of the groundwater supply and that the farmers were faced with inadequate water inputs. In this regard, the creation of local and regional water markets to balance water supply and demand has significantly reduced the effects of droughts. Additionally, the demand for irrigation water can be a good approach to cope with the effects of droughts. For this purpose, the present study mainly aims to investigate and evaluate the effects of the development of local and regional water markets in the Torshiz area and assess the potential of irrigation water transfers under drought and dehydration in the province's cities (as water conveyor region).