Coase-coloured Glasses and Rights Bundling: Why the Initial Specification of Water Rights in Volumetric Terms Matters

One of the substantive accomplishes of water reform in Australia has been the creation of water markets to assist in the allocation and reallocation of the resource. As the necessity for effectively managing water to achieve environmental objectives becomes more overt, the structure of water rights requires attention. In this article, we argue that the heavy focus on the volumetric attributes of water disguises other important elements of water that are likely to be especially significant for environmental managers and other interests like tourism and recreation.