Water Resources Management - Practices of Irrigation and On-farm Water Management - page 160

- Water is allocated to consumers irrespective of economic value or efficiency
of use
- The relatively low price of water, particularly in the agricultural sector
- Water institutions own water supply infrastructures
- Lack of funding or disproportionate funding for supply side measures at the
expense of WC/DM.

One of the greatest obstacles to implement WC/DM measures is the initial cap-
ital cost. The initial costs for more efficient devices and technologies for the
urban or agricultural sector can be substantial. This is despite the fact that costs
for demand-side measures are significantly less than cost for supply-side mea-
sures. To build a dam, the government typically secures a loan and contracts
private companies to construct it. Implementing WC/DM measures in the agri-
cultural sector, on the other hand, would require individual farmers to purchase
and install new devices or systems. Similarly, in the urban sector, individual
homes or businessmen must purchase and install new devices or systems to
achieve savings. Many cities and irrigation districts around the world have found
that it makes economic sense to provide incentives such as rebates to encourage
adoption of new technologies.
Another economic obstacle to efficient water use is subsidized water tariffs.
The vast majority of agricultural water users, and to a certain extent of urban
users enjoy subsidized water tariffs. Economic tools (increasing tariff or treating
water as a economic good) are often the most powerful in reducing inefficient
or wasteful use.
(b) Technical/institutional

- lack of adequate knowledge of the cause of growth in demand
- current planning practices choose the cheapest solution without regard to
operating costs
- lack of understanding of the consumer and water usage patterns
- lack of cooperation among local authorities
- lack of cooperation among water services institutions
- officials and industry sectors protect their personal interests
-

ignorance of WC/DM when promoting new infrastructure

Implementation of a properly designed and planned WC/DM program will fail
without a strong policy and legislative foundation.
(c) Public perception

- Supply side management options appear easier to implement
- Water conservation measures are perceived only as drought relief strategies
- Lack of understanding of principles, scope, and potential of demand
management
- Fears that water conservation will result in reduced service levels and
reduced crop production in the agricultural sector
- Demand management strategies are often incorrectly perceived as punitive
measures