Chilean water policy
1994
Gazmuri, S.R. (Asesorias y Servicios Cetra Ltda, Santiago (Chile))
Given the increasing competition for available water supplies, both within sectors and across sectors, some type of legal right is required to provide assurance of water supply. The ability to trade these rights is also needed in order to allow transfers of water from lower to higher value uses. Thus, the innovative nature of Chilean water law is very important as a model for other countries to examine. This law establishes secure water rights that are both tradeable and transferable as well as having provisions to protect third parties. It also provides for a market allocation mechanism within and between sectors. Local management organizations have the power to settle most conflicts over water, but those that cannot be settled at the local level have a clear judiciary process to follow with a judge making the final decision. The law also has provisions for addressing ownership questions related to irrigation water runoff (tail water) and underground water.
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