Economic valuation of the source

The environment is central to water resources management. The environment is both the source of water and a competitor for its use. The value of water as an integral component of an ecosystem, the role of the environment in driving flows of water, sediments, nutrients, energy and biota, as well as the interconnections between these flows in the landscape, are central to water resources challenges. Most water allocation mechanisms nowadays include the allocation of environmental water as a value domain. These mechanisms include: water reserves, caps on consumption, sustainable abstraction limits, water markets, licence conditions on infrastructure operators, and flow release rules and regimes for dams (Horne et al., 2017a). Legislation on water pollution is among the most widespread and oldest of water-related rules and regulations (WWAP, 2017).

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