Lifted from the journal “Integrating physical and economic data into experimental water

accounts for the United States: Lessons and opportunities” by Kenneth J. Bagstad; Zachary H.
Ancona; Julie Hass; Pierre D. Glynn; Scott Wentland; Michael Vardon; and John Fay

Scientific and popular understanding of the importance of water to economic activity, and
of the supply and regulation of water as an ecosystem service,2 has been increasing locally,
regionally, nationally, and internationally [ CITATION Uni12 \l 1033 ] . Water-scarce countries and
regions, such as Australia, have used water accounts to manage their resources and encourage
industries to become more efficient in their water use [CITATION Var07 \l 1033 ].

In places like Sweden, where water scarcity is a relatively low concern, water accounts
have been useful in developing regional plans for investments like water treatment facilities
[ CITATION Vat17 \l 1033 ].

For some types of economic activity, like irrigation or cooling of thermoelectric power
plants, water use can be substantial [ CITATION Die \l 1033 ]. As the demand for water increases,
allocations between households, agriculture, and other economic activities with high water use
will need to be made. Similar water allocation challenges surround issues related to virtual water,
interbasin transfers, and ecosystem water needs.

In some parts of the U.S., these tradeoffs are already happening. For example, in
Colorado, population growth in the Front Range cities of the Rocky Mountains is driving
demand for water that was previously used for agriculture in eastern Colorado, as well as
interbasin transfers from the Colorado River basin. Legal agreements governing water use in the
Lower Colorado River basin have resulted in the construction of water accounts for that
watershed [ CITATION Bur18 \l 1033 ].

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