The Jucar Basin faces the challenge of meeting an enormous demand for irrigation while water quality degrades from urban, industrial, and agricultural pollution. Relying on engineering solutions is not enough. Empirical evidence in Jucar indicates that water markets and institutional policies seem to deal with water scarcity more successfully than water pricing and irrigation subsidies. A first water governance priority is to convince farmers of substituting freshwater for the available urban recycled water. Second, seawater desalination plants must be upgraded so they will work at full capacity. More long-term governance goals are to curtail surface irrigation diversions and groundwater extractions, and reallocating water to urban, industrial, and environmental uses. These reforms will only work if they get the support and cooperation of farmers by compensating them for the reallocation of water from agriculture to other sectors. Published
