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The objective of this study is to develop a conceptual framework for establishing water leasing markets in New Mexico using the Mimbres River as a test case. Given the past and growing stress over water in New Mexico and the Mimbres River in particular, this work will develop a mechanism for the short term, efficient, temporary transfer of water from one user to another while avoiding adverse effects on any user not directly involved in the transaction (i.e., third party effects). Toward establishing a water leasing market, five basic tasks were performed, (1) a series of stakeholder meetings were conducted to identify and address concerns and interests of basin residents, (2) several gauges were installed on irrigation ditches to aid in the monitoring and management of water resources in the basin, (3) the hydrologic/market model and decision support interface was extended to include the Middle and Lower reaches of the Mimbres River, (4) experiments were conducted to aid in design of the water leasing market, and (5) a set of rules governing a water leasing market was drafted for future adoption by basin residents and the New Mexico Office of the State Engineer.

Designing a water leasing market for the Mimbres River, New Mexico.