New Zealand deserves far better water management. Too much water is being drawn in some river basins (catchments) – to the detriment of aquifers and rivers.
Fixing the problem requires reducing the amount of water drawn in those places.
Eric Crampton argues in ‘Refreshing Water’ that the most promising way of reducing water use harnesses the same kind of policy New Zealand is developing to reduce carbon dioxide emissions: a trading scheme. Capping the total water take within a catchment, converting existing water consents into tradeable permits, and letting permit-holders trade their drawing rights allows New Zealand to do the most good in improving environmental quality.
The solution is well-recognised. But progress has been stymied because successive governments have been unwilling to address iwi water claims.
Resolving iwi water rights is important for its own sake. But it is also critical in enabling far better environmental practice. The environmental costs of not resolving iwi claims are too great.
