2 December 2014: In an effort to better understand water rights prices, the Global Water Forum (GWF) featured an article from Chile exploring the influence of market and non-market drivers of price.

Based on research carried out in the Maipo river basin, the article examines water rights prices for both consumptive use as well as non-consumptive use, which requires the return of water to the basin. Overall, the article concludes that there is a high degree of variability in the market, which is largely driven by the agriculture and real estate sectors.

The difference in prices can, according to the article, be at least partially explained by the level of experience of the buyer or seller, the certainty associated with the ability to transfer rights and the level of water flow. As such, the article stresses the link between bargaining experience and the ability to realize lower prices for water rights. [Global Water Forum Press Release]