Water allocation and pricing for control of irrigation‐Related salinity in a river basin

Optimal allocation of water to sequential irrigators is considered with emphasis on downstream salinity damages caused by salt‐concentrating mechanisms inherent in irrigated agriculture. The allocation is achieved by using a dynamic programing framework with decision variables of amount diverted, land irrigated, and amount of irrigation canals lined. This framework is used to investigate a scheme whereby water is purchased and held for downstream use solely as a dilutant. The basis is established in principle for an operational, water rights market where all purchasers are financed by downstream beneficiaries. Several examples are given.