Department of Agricultural and Resource Economics

The problem addressed by this study is how a large urban water district can best respond to a drought or the prospect of a drought. Specifically, what is the least cost combination of alternatives to meet periodic shortages? A solution to this problem may involve structural approaches (such as developing new local storage capacity), a mix of structural and nonstructural (such as conjunctive use combined with water exchanges or sales), or purely nonstructural approaches (such as changes in water pricing). The application is to the East Bay Municipal Utility District (EBMUD), which includes portions of Alameda and Contra Costa counties on the east side of San Francisco Bay, but the concepts and methods (and some of the findings) will be relevant to other districts.