As globalization links economies, the value of a country's irrigation water is becoming increasingly sensitive to competitive forces in world markets. Water policy at the national and regional levels will need to accommodate these forces, or water is likely to become undervalued. The inefficient use of this resource will lessen a country's comparative advantage in world markets and slow a country's transition to higher incomes, particularly in rural households. While professionals widely agree on what constitutes sound water resources management, they have not reached a consensus about the best ways of implementing policies in this sector. Policymakers have considered pricing water?a debated intervention?in many variations. Setting the price "right," some say, may guide different types of users in efficient water use by sending a signal about the value of this resource. Aside from efficiency, itself an important policy objective, equity, accessibility, and implementation...

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