Water Resource Management PDF

Centre for Development, Environment and Policy
P526
Water Resources Management
Produced in partnership with the International Water Management Institute (IWMI).
Edited by Laurence Smith.
Unit authors:
Unit 1: Charlotte de Fraiture, Nadia Manning and David Molden
Unit 2: Charlotte de Fraiture, David Molden, Laurence Smith and Samyuktha Varma
Unit 3: Mark Giordano and Samyuktha Varma
Units 4, 5 & 10: Laurence Smith
Units 6 & 7: David Molden, Charlotte de Fraiture, Sithara Atapattu and Laurence
Smith
Unit 8: Sophie Nguyen-Khoa, Malcolm Beveridge, Sithara Atapattu and Laurence
Smith
Unit 9: Max Finlayson and Sithara Atapattu
Units 4, 5 and 10 are partially based on the previous modules:

Water Resource Management prepared by Mike Stockbridge in 2004 and
Economics of Water Resources prepared by Laurence Smith in 2002.
Revised by Laurence Smith in 2013.
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P526 Water Resources Management Module Introduction
MODULE INTRODUCTION
ABOUT THIS MODULE

This module is about water resources, their complex relationship with the
environment and the economy and the growing problem of water scarcity and the
various options that exist to deal with this problem. The module examines how water
is allocated between various competing demands and explores the role that water
plays in food security, public health, people’s livelihoods and other aspects of social
and economic development. The module seeks to critically evaluate the benefits,
costs and impacts of water resources development, particularly those aspects most
relevant to social and economic development in rural areas. Coverage includes the
key water management challenges communities are facing today and the solutions
that people have developed.
Parts of the module concentrate on the ways in which economic concepts, methods
and judgements can inform water resource management strategies and policy
decisions that affect the resource. Economic efficiency in resource allocation is only
one of many criteria used by policy-makers to evaluate the appropriate approach to a
given issue. However, the insights given by the application of economic theory are
often ignored in the face of conflicts over the use of water.
The module also introduces a range of techniques, methods and information

resources that can be used by professionals for the assessment of water resources
and planning. Good information and good applied science are keys to improved water
resource management and should be considered as necessary but not sufficient. It is
also vital to develop the institutional arrangements and policies necessary for
sustainable water use and environmental conservation. Thus governance
arrangements in relation to water management are also a leading theme of the
module.
STRUCTURE OF THE MODULE

The module consists of ten units. Unit 1 starts by using the concepts of the
hydrological cycle to inform assessment of water resources and understanding of the
concept and causes of water scarcity. Drivers of increasing water scarcity are
identified. Key readings provide a guide to understanding national and international
trends and the use of scenarios for making assessments of future water and food
security. As food production is the main direct water use by people, attention focuses
on water use in agriculture and means to increase water productivity. It is
recognised, however, that a country’s resources should not be considered in
isolation, and trade in food is a vital part of the overall resource management
picture. The theme of resource assessment is continued in Unit 2 which critically
assesses the river basin for water resources planning. This leads naturally into
consideration of the logic of managing resources at river basin scale, and also
enables introduction of the concepts, principles and approaches of integrated water
resources management (IWRM).
Unit 3 returns to first principles in analysing factors that may determine the most
appropriate governance arrangements for water resources. Key issues that frame
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institutional and policy responses to to water resource governance are identified, and
the strengths and limitations of local and community scale water governance
systems are explored. Issues of scale also require analysis of governance at higher
levels, including factors beyond water management itself that influence the wider
political economy within which water is used.
Unit 4 considers how economic concepts, methods and judgements can improve our
understanding of water resources and their use. It covers the range of private and
public-good characteristics of water resources, and some basic economic concepts
that can be used to analyse water resources problems, provide insights into complex
issues and lead to policy recommendations. The unit discusses the logic for using
price and market mechanisms in water allocation and highlights practical limitations
to such policies. Determinants of demand for water in different sectors are assessed
and the concept of price elasticity of demand for water is defined and applied to
debates about pricing policy.
Unit 5 assesses the scale of the global deficit in provision of safe drinking water and
sanitation and why this matters. It emphasises the human development costs of the
problem and the potential benefits of resolving it in terms of public health, education,
livelihood opportunities and economic growth. Reasons for under-provision of water
supply and sanitation are explored. Analysis includes consideration of the benefits of
treating access to clean water and sanitation as human rights. Key characteristics of
urban and rural water supply systems are reviewed, as well as the debate regarding
the merits of public versus privatised provision and leading policy priorities for
expanding access to water services. Finally, the unit provides an analysis of the
economics of water supply utilities. It explains the importance of regulation and
considers alternative objectives and means for water pricing and cost recovery.
Units 6 and 7 provide detailed study of the use of water in the agricultural sector.
First up is rainfed agriculture and farming based on small-scale irrigation. The main
issues surround the linkages between water resource use and food security,
livelihoods and poverty, and why the means to raise agricultural productivity are so
important. Part of the change in thinking presented in this module compared to
conventional approaches to water resource management, is the emphasis on
recognition of the multiple uses of water by rural households. Unit 7 provides an
introduction to large-scale and formal irrigation systems, covering their role in
poverty alleviation and their wider social, economic and environmental impacts.
Types of irrigation systems are identified based on their governance and water
sources and implications for management are considered. Finally different options for
financing irrigation are considered including water pricing and drivers for investment.
Units 8 and 9 return us to a more holistic and integrated view of water resources
considered at river basin level. The focus of unit 8 is fisheries and aquaculture as
water uses, providing an introduction to their key characteristics and the distinctions
between them. It looks at their significance in farming systems and the water
requirements involved. It also considers the methods and tools available to assess
water requirements for fisheries and aquaculture. Finally it explains trade-offs for
water allocation for fisheries and aquaculture and introduce perspectives on relevant
water governance and policy. Unit 9 then provides an introduction to the key
concepts and issues associated with managing water for ecosystems. It covers the
natural resources provided by ecosystems and linkages with poverty and water
management. Some ecology of aquatic ecosystems and their structure, processes
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and biodiversity is reviewed to help identify how ecosystem services are provided
and sustained. Then the final part looks at the over-exploitation of the services
provided by aquatic ecosystems and how this can lead to ecosystem degradation,
followed by summary of scenarios and management response options.
Unit 10 concludes the module by taking a summary look at some of the key
responses to water management problems and at practical issues of policy
implementation. It uses a contrast between supply augmentation and demand
management policies as a device to bring out key issues. Key messages relate to
how and why a package of policy measures needs to be developed for a given
situation taking account of location-specific conditions. The final section of Unit 10
considers the challenges posed for water management by climate change. There is
not scope to do this topic full justice and in any case, policy and practice are still
rapidly evolving. It is recognised that balanced and integrated strategies for
mitigation, adaptation and conflict resolution are needed, and key policy lessons
relevant to each of these are briefly identified and reviewed.
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WHAT YOU WILL LEARN
Module Aims
• To describe the range of problems facing the water sector.
• To introduce and critically assess a range of assessment methods and

information resources for water resources management.
• To introduce and assess the range of possible policy approaches relevant to

water resources management; with a particular focus on rural areas in
developing economies.
• To explain the economic characteristics of the water resource.
Module Learning Outcomes

By the end of this module, students should have:
• critical appreciation of the wide global variability in water availability and use
• knowledge and critical understanding of the complexity of the water resource in

its physical, social and economic dimensions
• ability to critically analyse the importance of continuing water sector investment

in agriculture and the priorities and modes for this
• ability to explain critically the rationale for an integrated approach to water

sector policy
• ability to critically apply a range of assessment approaches and analytical

methods for use in the planning and implementation of improved water
resources management
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ASSESSMENT
This module is assessed by:
• an examined assignment (EA) worth 20%
• a written examination in October worth 80%
Since the EA is an element of the formal examination process, please note the
following:
(a) The EA questions and submission date will be available on the Online Learning
Environment.
(b) The EA is submitted by uploading it to the Online Learning Environment.
(c) The EA is marked by the module tutor and students will receive a percentage
mark and feedback.
(d) Answers submitted must be entirely the student’s own work and not a product
of collaboration. For this reason, the Online Learning Environment is not an
appropriate forum for queries about the EA.
(e) Plagiarism is a breach of regulations. To ensure compliance with the specific

University of London regulations, all students are advised to read the
guidelines on referencing the work of other people. For more detailed
information, see the User Resource Section of the Online Learning
Environment.
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STUDY MATERIALS
There is one textbook accompanying this module.
• Molden D (ed) (2007) Water for Food, Water for Life: A Comprehensive
Assessment of Water Management in Agriculture. Earthscan, London and
International Water Management Institute, Colombo.
This book critically evaluates the benefits, costs and impacts of the past 50 years of
water development, the water management challenges communities are facing today
and solutions people have developed. The authors hope that the results will enable
better investment and management decisions in water and agriculture in the near
future and over the next 50 years. The assessment was produced by a broad
partnership of practitioners, researchers and policy-makers co-ordinated by the
International Water Management Institute in Sri Lanka (IWMI).
The content of this book places water management in agriculture in a social,

ecological, and political context and assesses the dominant drivers of change. It
explicitly addresses multiple uses of water and dynamic interactions between water
for production systems, livelihood support and the environment. It analyses past and
current water development efforts from the perspective of costs, benefits and
impacts, considering society (economic and rural development, increased food
security, agricultural development, health and poverty) and the environment
(conservation and degradation of ecosystems and agriculture). Despite its title, it
goes well beyond simply the assessment of water use in agriculture, drawing lessons
of relevance to water resources management in general. Cross-cutting issues
covered in the assessment include health, gender and climate change.
For each of the ten units some Key Readings are also provided. These Key Readings
are drawn mainly from relevant academic journals and agency reports, and provide
applied research examples and applications of the key concepts covered. The Key
Readings are intended to extend the material covered in the units to provide a
broader and more thorough treatment of the material being covered. Students are
expected to read the Key Readings and exerts from the textbook (indicated in the
Key Readings list), as this is material on which students may be examined at the end
of the module.
A large number of Further Readings and References are also listed. These texts are
not provided but many are available on the internet. All references cited in the unit
text are listed here. Students are not expected to follow up each and every Further
Reading but may follow up specific points of interest. Units 1, 7, 9 and 10 also
include some multimedia.
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INDICATIVE STUDY CALENDAR
Part/unit Unit title Study time

(hours)
Unit 1 Water resources and scarcity 15
Unit 2 Key concepts: assessment and management from basin to 10

user
Unit 3 Governance 10
Unit 4 Economics of water use 15
Unit 5 Water supply and sanitation 15
Unit 6 Water use in agriculture – small-scale irrigation and 15

rainwater harvesting
Unit 7 Water use in agriculture – large-scale irrigation 15
Unit 8 Inland fisheries and aquaculture 10
Unit 9 Water and ecosystems 15
Unit 10 Policy and change 15
Examined Assignment 15
Check the online learning environment or introductory text of the EA for
the submission deadline
Examination entry July
Revision and examination preparation September
End-of-module examination October
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ACRONYMS AND ABBREVIATIONS

CA Comprehensive Assessment of water management in agriculture
(Program and Book)
ERA ecological risk assessment
ET evapo-transpiration
FAO Food and Agricultural Organization of the United Nations

FAOSTAT statistics of the Food and Agricultural Organization of the United Nations
GIS geographic information systems
IAASTD International Assessment of Agricultural Knowledge, Science and
Technology for Development
IFPRI International Food Policy Research Institute
IMT irrigation management transfer
IPCC Intergovernmental Panel on Climate Change

IWMI International Water Management Institute
IWRM integrated water resources management
MA Millennium Ecosystem Assessment
MUS multiple water use services
MVP marginal value product

NGO non-government organisation
O&M operation and maintenance

ODI Overseas Development Institute
PET potential evapo-transpiration
PIM participatory irrigation management
RBM river basin management
RBO river basin organisation
RFWR renewable freshwater resources
SCBA social cost–benefit analysis
TEV total economic value
UN United Nations
UNDP United Nations Development Programme
UNECE United Nations Economic Commission for Europe
UNEP United Nations Environment Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNICEF United Nations Children’s Fund
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WCD World Commission on Dams

WHO World Health Organization
WMO World Meteorological Organization
WTP willingness to pay
WUA water user association(s)
WWAP World Water Assessment Programme
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Unit One: Water Resources and Scarcity
Unit authors: Charlotte de Fraiture, Nadia Manning and David Molden
Unit Information 3
Unit Overview 3
Unit Aims 3
Unit Learning Outcomes 3
Unit Interdependencies 4
Key Readings 5
Further Readings 6
References 8
Weblinks and Portals 9
Multimedia 10
1.0 Introduction to water resources 11
Section Overview 11
Section Learning Outcome 11
1.1 Hydrological cycle 11
1.2 Hydrological concepts 12
1.3 Tools for assessment of water resources 14
Section 1 Self Assessment Questions 16
2.0 Water resources assessment 17
Section Overview 17
2.1 Water availability 17
2.2 Water demand 19
2.3 Competition 20
3.0 Water scarcity 22
Section Overview 22
3.1 Water scarcity concepts 22
3.2 Is there a water crisis? 23
P526 Water Resources Management Unit 1
4.0 Drivers and trends in water resources 25
Section Overview 25
4.1 Drivers 25
4.2 Trends 26
5.0 Future directions 28
Section Overview 28
5.1 Scenarios 28
5.2 Improving water productivity 29
5.3 Upgrading rainfed agriculture 30
5.4 Trade as tool to alleviate water scarcity 31
Unit Summary 34
Unit Self Assessment Questions 36
Key Terms and Concepts 37
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UNIT INFORMATION
Unit Overview
This unit provides an introduction to some of the key themes, concepts and tools
associated with the management of water resources. The first section outlines the
necessary hydrological concepts and tools which serves as a platform for the rest of
the module. Section 2 explores water resources assessment by looking at water
availability and water demand, as well as various forms of competition for water
resources. In Section 3, the concept of water scarcity is introduced, and varying
forms and indicators for understanding and categorising water scarcity are examined.
The question of whether there is a water crisis is posed. The factors driving demand
for water and the trends of water resources availability and use are discussed in
Section 4. Section 5 closes this unit with a look at future directions, by considering
some current options and scenarios for future water resources use and management.
Unit Aims
• To introduce the hydrological cycle, hydrological concepts and tools necessary
for understanding and assessing water resources.
• To introduce key concepts of water availability and water demand, provide an

overview of the changes in water demand and outline the various situations of
competition for water resources.
• To introduce the concept of water scarcity, outline arguments for varying

concepts of water scarcity, present particular country/regional examples and
outline arguments for whether there is a water crisis.
• To provide an overview of water demand, identify and explain key factors

driving (increasing) water demand and to present various trends in water
resources.
• To introduce future directions and options for water resources through

presentation of virtual water and water productivity concepts, as well as to
present and outline arguments for various scenarios for the future.
Unit Learning Outcomes

By the end of this unit, students should be able to:
• describe and explain key hydrological concepts and appraise critically the need,
use and effectiveness of various tools for assessing water resources
• define and compare various ways of understanding water availability, explain

the concept of water demand and order reasons for increasing water demand,
as well as give examples of and appraise critically various forms of competition
for water resources
• discuss water scarcity, apply various concepts and indicators of water scarcity,
distinguish between different types of water scarcity by country and region and
list reasons for (and against) whether there is a ‘water crisis’
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• summarise the concept of water demand, compare various factors driving

(increasing) water demand, and evaluate various trends and the data and
models used for generating such trends
• recall and appraise critically the concept of virtual water, summarise and apply
the concept of (improving) water productivity and give examples of, compare
and outline arguments for various scenarios
Unit Interdependencies
Unit 2
Unit 2 looks at key concepts in the assessment and management of water resources
from basin to user, the necessary background to which is given in Unit one.
Unit 3
A clear understanding of water resources and their uses is necessary for considering
the options for governance covered in this unit.
Unit 4
The discussion on water scarcity and increasing competition for water between uses
and sectors is particularly pertinent to understanding the economics of water use
explored in Unit 4.
Unit 5
The concept of rural versus urban water supply needs and competition are
underpinned by the introduction of water use by various sectors and the issues of
competition which are laid out in Unit 1.
Unit 6
Unit 6 looks at water use in agriculture with a focus on small-scale irrigation. The
importance of irrigation as the major water user is introduced in Unit 1.
Unit 7
Unit 7 explores water use in agriculture with a focus on large-scale irrigation. The
competition which develops between various sectors as their water demand increases
is very relevant.
Unit 8
The introduction in this unit to various uses of water, various types of water
productivity and the need to consider environmental uses of water is relevant to the
assessment of the water needs of fisheries and aquaculture in Unit 8.
Unit 9
Unit 1 highlighted the environment as a ‘silent’ water user which is key to

understanding the concept of water for nature explored further in Unit 9.
Unit 10
The basics behind water resources, demand, scarcity and management that are
introduced in Unit 1 are vital to thinking about the policies and practices that need to
be formulated for implementing change.
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KEY READINGS
 Molden D, Faurès J-M, Finlayson CM, Gitay H, Muylwijk J, Schipper L, Vallée D,

Coates D (2007) Setting the scene. In: Molden D (ed) Water for Food, Water for
Life: a Comprehensive Assessment of Water Management in Agriculture.
Earthscan, London, and International Water Management Institute, Colombo, pp.
41–53.
This reading provides an overview of water resources and water management. It lays out key
concepts, a conceptual framework for understanding the goals, drivers and outcomes, and
impacts of water management in agriculture and introduces the use of scenarios. The general
and introductory chapter is easy to read and provides clear and concise definitions and
concepts. This chapter does not take any particular position but sets out the general and
background information necessary for more in-depth exploration of water resources and
management in further chapters.
 Molden D, Frenken K, Barker R, de Fraiture C, Mati B, Svendsen M, Sadoff C,

Finlayson CM (2007) Trends in water and agricultural development. In: Molden D
(ed) Water for Food, Water for Life: a Comprehensive Assessment of Water
Management in Agriculture. Earthscan, London, and International Water
Management Institute, Colombo, pp. 57–89.
This chapter provides an overview of key water, food and livelihood drivers, as well as trends in
water and agricultural development. It outlines key trends and their drivers, benefits and costs
and changing response over time to the water—food—environment challenge. This reading
additionally introduces the concept of water scarcity and explores the debate of whether there
is a water crisis today. This chapter is primarily concerned with looking at key trends in water
resources over the past fifty years (approximately) to help us better understand the current
situation. The chapter outlines in detail a number of the key factors which have driven these
trends. This chapter is longer, more detailed and contains more facts, figures, graphs and tables
for better understanding of the topic and examples.
In particular, note the map provided of areas of physical and economic water scarcity (Map 2.1,
p. 63). Refer to this when thinking about water scarcity in countries you are familiar with.
 Oki T, Kanae S (2005) Global hydrological cycles and world water resources.
Review. Special Section on Freshwater Resources. Science 313 1068–1972.
This reading is meant to ‘kick-off’ the module. While it lays out the hydrological cycle and key
hydrological terms, it does this within the context of assessing water resources, understanding
water scarcity and considering water resources management. This article is easy to read but
does supply technical explanations, facts, figures and graphics. While it assumes a basic
knowledge of water resources and its movement through the cycle, it provides useful
explanations and examples through the application of hydrological concepts that show how
much water is available for humans and ecosystems and how changes in demand particularly
will affect the global system. This reading introduces key terms such as blue and green water
and has an interesting section on virtual water which will be explored later in the unit. The
reading explores both natural and anthropogenic effects on the hydrological cycle and briefly
looks at effect of climate change. This reading provides a holistic look at the topics of this unit
and other units in this module.
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FURTHER READINGS
de Fraiture C, Cai X, Amarasinge U, Rosegrant M, Molden D (2004) Does International

Cereal Trade Save Water? The Impact of Virtual Water Trade on Global Water Use.
Comprehensive Assessment Research Report 4, Comprehensive Assessment
Secretariat, Colombo, Sri Lanka.
Available from: http://ageconsearch.umn.edu/bitstream/92832/2/CARR4.pdf
This reading is focused on the concept of virtual water. This report introduces the concept, lays
out important definitions and methods and presents data and data sources. Important results
are also presented, including useful tables and diagrams. Especially important are the figures
showing virtual water flows due to cereal trade, expressed in both crop water and irrigation
water depletion. While for the most part this report is very technical in nature, the final section
outlines the application of this concept and engages the reader in substantiated arguments with
regards to whether the cereal trade does save water.
de Fraiture C, Wichelns D, Rockström J, Kemp-Benedict E (2007) Looking ahead to

2050: scenarios of alternative investment approaches. In: Molden D (ed) Water for
Food, Water for Life: a Comprehensive Assessment of Water Management in
Agriculture. Earthscan, London, and International Water Management Institute,
Colombo, pp. 91–145.
The main sections of this chapter look at drivers of agricultural water use, exploring alternative
strategies, understanding trade-offs, comparing south Asia and sub-Saharan Africa, and the
Comprehensive Assessment scenario. While chapter two in the volume explored trends based on
historical evidence, this chapter considers these plus current situations to try to predict in
different ways and considering varying interventions what the situation will look like in the next
50 years. It is useful to note that this chapter includes a lot of data as well as a large number of
references from which further information may be sought.
Molden D, Oweis TY, Steduto P, Kijne JW, Hanjra MA, Bindraban PS (2007) Pathways
for increasing agricultural water productivity. In: Molden D (ed) Water for Food,
Water for Life: a Comprehensive Assessment of Water Management in Agriculture.
Earthscan, London, and International Water Management Institute, Colombo, pp.
279–310.
This chapter introduces what water productivity is and why it is important, and provides in-
depth material on understanding water productivity of different types and different scales. The
text provides a general overview which is supported by accompanying data and evidence found
in the tables, graphs, figures and boxes throughout the chapter. Many useful definitions
associated with water resources can be found in this chapter. Much of the material is more
technical but towards the end of the chapter important ways to apply this information and tools
are presented, such as for reducing poverty, establishing enabling conditions and understanding
and influencing investment priorities.
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Mee L, Adeel Z (2012) Science-Policy Bridges Over Troubled Waters – Making Science
Deliver Greater Impacts in Shared Water Systems. United Nations University Institute
for Water, Environment and Health (UNU-INWEH), Hamilton, Canada.
Available from:
http://www.zaragoza.es/ciudad/medioambiente/onu/en/detallePer_Onu?id=504
This report provides the overall synthesis of the findings of the GEF IW:Science project. It is
based on a series of reports produced for each of five classes of global transboundary water
system: River Basins, Lakes, Groundwater, Land-based Pollution Sources, and Large Marine
Ecosystems and Open Oceans. Summarising the key findings and recommendations from these
underlying Synopsis and Analysis Reports, an integrated perspective on a broad range of
transboundary water issues is provided.
Jägerskog A, Jønch Clausen T (eds) (2012) Feeding a Thirsty World – Challenges and
Opportunities for a Water and Food Secure Future. Report No 31, Stockholm
International Water Institute (SIWI), Stockholm.
Available from:
http://www.siwi.org/documents/Resources/Reports/Feeding_a_thirsty_world_2012wo
rldwaterweek_report_31.pdf
A report prepared as input to the 2012 World Water Week and its Special Focus on Water and
Food Security.
Bigas H (ed) (2012) The Global Water Crisis: Addressing an Urgent Security Issue.
Papers for the InterAction Council, 2011–2012, UNU-INWEH, Hamilton, Canada.
Available from: http://www.interactioncouncil.org/global-water-crisis-addressing-

urgent-security-issue-1
The authors of this report address the problems of water scarcity: a rapidly growing population
with associated changes in lifestyle and consumption patterns; competition between sectors,
such as industry, agriculture and energy for precious land and water resources; inadequate
access to water supply and sanitation services for what is now becoming known as the ‘bottom
billion’ on this planet; the failure to address adequately the issue of indigenous water rights and
include marginalised populations in water decision-making processes; matters related to
environmental protection; and, growing tension over transboundary water issues. They
recognise that all of these problems will, to some extent, be exacerbated if past and current
hydrological patterns become no longer be sufficient, or a reliable guide for dealing with future
hydro-climatic scenarios.
Gleick PH, Palaniappan M (2010) Peak water limits to freshwater withdrawal and use.
Proceedings of the National Academy of Sciences of the United States of America
107(25) 11155–11162.
Available from: http://www.pnas.org/content/early/2010/05/20/1004812107.full.pdf

Peak renewable water applies where flow constraints limit total water availability over time.
Peak nonrenewable water is observable in groundwater systems where production rates
substantially exceed natural recharge rates and where overpumping or contamination leads to a
peak of production followed by a decline, similar to more traditional peak-oil curves. Peak
‘ecological’ water is defined as the point beyond which the total costs of ecological disruptions
and damages exceed the total value provided by human use of that water. Despite uncertainties
in quantifying many of these costs and benefits in consistent ways, more and more watersheds
appear to have already passed the point of peak water.
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REFERENCES
Allan JA (1998) Virtual water: a strategic resource. Global solutions to regional

deficits. Groundwater 36(4) 545–546.
de Fraiture C, Cai X, Amarasinghe U, Rosegrant M, Molden D (2004) Does

International Cereal Trade Save Water? The Impact of Virtual Water Trade on Global
Water Use. Comprehensive Assessment Research Report 4, Comprehensive
Assessment Secretariat Colombo, Sri Lanka.
Lant C (2003) Virtual water discussion: commentary. Water International 28(1) 113–
115.
Molden D (1997) Accounting for Water Use and Productivity. SWIM Paper 1,
International Irrigation Management Institute (IIMI), Colombo, Sri Lanka.
Available from:
http://www.iwmi.cgiar.org/Publications/SWIM_Papers/PDFs/SWIM01.PDF
[Accessed 9 September 2013]
TIIMES (2007) Hydrological Cycle. The Institute for Integrative & Multidisciplinary
Earth Studies (TIIMES).
IWMI GIS Unit (2008) An Example from the IWMI GIS Unit.
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WEBLINKS AND PORTALS
FAO Aquastat The AQUASTAT database provides information on water and

online database agriculture by countries in the following main categories:
– land use and population
– climate and water resources
– water use, by sector and by source
– irrigation and drainage development
– environment and health
The AQUASTAT database can be queried on-line and the query

results can be downloaded in CSV format. The current database
regroups data per 5-year period and shows for each variable the
value for the most recent year during that period, if available. For
example, if for the period 1998–2002 data are available for the
year 1999 and for the year 2001, then the value for the year
2001 is shown. It should be noted however, that for most
variables no time series can be made available yet, due to lack of
sufficient data.
http://www.fao.org/ag/agl/aglw/aquastat/dbase/index.stm
FAO Aquastat This ten-minute guided tour is intended primarily for people who
Water Tour are not familiar with the relationship between water, agriculture,
food security and poverty. The reader will also learn about
effective ways of managing agricultural water. For those who are
familiar with these issues, the tour offers a synthesis as well as
key facts and figures.
http://www.fao.org/nr/water/art/2007/flash/glance/gallery1.html
The Hydrologic A source for more detailed explanation of physical and

Cycle meteorological processes.
http://ww2010.atmos.uiuc.edu/(Gh)/guides/mtr/hyd/home.rxml
The International A leading research organisation in the field of water management

Water Management in agriculture which publishes working papers, research reports,
Institute (IWMI)
journal articles, books and other communication materials. This
institute also produces maps, diagrams, graphs and other visual
materials.
Research reports from the Comprehensive Assessment series,

some of which are listed as Further Reading for this module, can
be downloaded from this site.
http://www.iwmi.org
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The Podium Model The IWMI Global Policy Dialogue Model (PODIUM) is an interactive
policy planning and scenario analysis tool which explores the
trade-offs and future demands on water resources on a national
scale. It is intended to foster dialogue and stakeholder
participation and provide a basis for multi-sectoral planning and
analysis. It is not intended to be used as a quantitatively reliable
predictive tool but is provided as an awareness raising exercise
useful to explore the complex interactions of water scarcity, food
security and environment needs, in light of increasing populations
and changing national diets.
http://www.cglrc.cgiar.org/iwmi/podium.htm
Water Alternatives A free access internet based interdisciplinary journal aiming to

address the full range of issues that water raises in contemporary
societies.
http://www.water-alternatives.org/
MULTIMEDIA
Hoekstra A (1 May 2013) Virtual Water: The Water Footprint of Modern Society. The
Institute of International and European Affairs (IIEA). Podcast and PowerPoint.
Available from: http://www.iiea.com/events/virtual-water-the-water-footprint-of-

modern-society
Professor Hoekstra is Professor of Water Management at the University of Twente, the

Netherlands, creator of the water footprint concept and founder of the Water Footprint
Network. He has led a variety of interdisciplinary research projects and advised governments,
civil society organisations, companies and multilateral institutions like UNESCO and the World
Bank.
In his address, Professor Hoeksktra discussed the concept of the ‘water footprint’, which he
developed. Like a carbon footprint, the water footprint measures the amount of water used
either directly or embodied indirectly in the goods we consume. Many countries and businesses
have externalised their water footprint, importing water-intensive goods from elsewhere. As
climate change and population growth place increasing pressure on water resources, Professor
Hoekstra outlined ways for businesses and governments to cut direct water consumption and
supply chain consumption to sustainable levels.
© SOAS CeDEP 10
1.0 INTRODUCTION TO WATER RESOURCES
Section Overview
This module is about water resources management. It is therefore necessary to
understand what water resources are. This unit provides a general introduction to the
terms and concepts that help us to understand water resources and their various
forms and movements through our systems. What is the hydrological cycle and what
does this mean for availability, use and management of water? This section provides
an introduction to all aspects of input, storage, changes in state, use and output of
water through our land, water and atmosphere systems, with special attention paid
to the inclusion of groundwater as a water resource. This important background
information on water resources is vital for being able to address the management
aspect of the module’s title.
Section Learning Outcome

By the end of this section, students should be able to:
• describe and explain key hydrological concepts and appraise critically the need,
use and effectiveness of various tools for assessing water resources
1.1 Hydrological cycle

We cannot begin to understand and discuss water resources, especially water
resources management, without a firm understanding of the forms in which water
exists and the ways in which it moves throughout our systems, including the change
in forms it takes. Water is a naturally circulating resource that is constantly moving
and changing. This involves:
• precipitation – in the form of rain or snow (input into the system)
• evaporation back to the atmosphere from water or land bodies and

transpiration from crops (output)
• run-off into freshwater systems (rivers, lakes and groundwater)
• water use for drinking, food production, industries and hydropower production.
• water storage in natural (groundwater) or artificial bodies (reservoirs)
This is also known as the hydrological cycle (see figure 1.1.1 or for an animated
diagram, please see your e-study guide) and involves the combined flows, use,
change in state and storage of water above and below the ground and in the
atmosphere. The cycle involves both natural and human-induced processes. Water is
not lost; it evaporates, it changes from liquid to gas and eventually re-condenses as
a liquid and when it is assimilated during photosynthesis, it becomes part of
carbohydrates stored in plants but ultimately reverts to water again by
decomposition. Once used, however, water does lose properties such as purity, heat,
and potential gravitational energy. These are again recharged as the sun’s energy
drives evaporation of water back to the atmosphere.
© SOAS CeDEP 11
Of importance for humans is the part of the hydrological cycle which is available for
use by human society. The available Renewable Freshwater Resources (RFWR) is
influenced by the climate system which puts an upper limit on the circulation rate.
The RFWR is renewed by rainfall and run-off each year but has uneven distribution in
time and space.
The hydrological cycle is not only an important tool for understanding the origin and
movements of water resources but is necessary for assessing the RWFR. Looking at
water in terms of stocks of water held in various reservoirs (natural and artificial),
does not give a clear picture of how much is available for human use since many of
the stocks are inaccessible, such as in glaciers or deep groundwater. Assessments of
water resources should focus on the flows of water throughout the system.
More detailed descriptions of the various concepts involved in the hydrological cycle
will be provided in the next sub-section (1.2).
1.1.1 Hydrological cycle
Units: Thousand cubic km for storage, and thousand cubic km/yr for exchanges.
Source: TIIMES (2007)
1.2 Hydrological concepts

After the broad introduction to the hydrological cycle, it is now necessary to take a
closer look at the various concepts of the parts involved. These concepts give more
detailed explanations of how water enters, moves around, is stored, is used and exits
the system.
Precipitation which includes rain and snow is the ultimate source of water. While this
may seem obvious to some, it is worth noting that this is different from the
conventional view of water for agriculture which focuses on withdrawals of water
© SOAS CeDEP 12
from surface sources (rivers, lakes) and groundwater sources for irrigation. Once
rainfall has occurred, water moves in different ways within the system. The water
from rainfall which settles on the surface of the land and starts to flow is known as
run-off and contributes to riverflow. Some of the water from rainfall infiltrates the
ground. Part of this water is stored temporarily within soils, and is converted into
liquid vapour through evaporation from soils and transpiration by plants and trees.
The other part infiltrates the ground further and is stored for longer periods of time
as groundwater which may later be extracted naturally by plants or evaporation, if
the water table is high enough, or physically through digging of boreholes and wells
and use of pumps.
The processes of soil evaporation and crop transpiration, together known as evapo-
transpiration (ET), are critical for an understanding of water and agriculture. Water
moves from the roots to the stomata where it is eventually transpired (transformed
from liquid to vapour before leaving to the atmosphere). Plants transpire water for
cooling, to move nutrients through their structure and to provide water for
photosynthesis. Water evaporates from soils supporting agricultural crops. People
use the combined term of ET to represent the total amount of water that returns to
the atmosphere in the process of plant production. The source of water for ET is both
rainfall and irrigation. Water that is evapo-transpired in such a manner is beneficial
in that it produces crop biomass used for food (grains, vegetables) and feed for
animals (stems and leaves). Water that is evapo-transpired cannot contribute to run-
off and if more land is converted to agriculture increasing ET, the side impact is that
there may be less river run-off because of agricultural production. Potential evapo-
transpiration (PET) is a representation of the environmental demand for evapo-
transpiration. To estimate PET, a convention is to use the idea of a reference crop - a
short green crop, completely shading the ground, of uniform height and with
adequate water status in the soil profile. PET is a function of the energy available to
evaporate water, the wind available to transport the water vapour from the ground
up into the lower atmosphere and the vapour pressure deficit (how dry the air is).
Evapo-transpiration is said to equal potential evapo-transpiration when the amount
of water in the soil does not limit evapo-transpiration.
Two main concepts are sometimes used to describe the different sources and flows of
water – blue water and green water. Blue water is water in rivers, groundwater
aquifers, reservoirs and lakes. This is the main water source in irrigated agriculture.
Green water refers to the soil moisture generated from rainfall that infiltrates the soil
and is available for uptake by plants. Green water is the main source of water for
rainfed agriculture and also contributes to production in irrigated agriculture.
Agriculture relies on several sources: rainfall, groundwater, withdrawals from rivers
and lakes and water that has been used and recycled.
What about other sectors of society? Cities need water for drinking and sanitation
and rely mostly on withdrawals from storage, rivers and groundwater. Industries
need this same blue water source. Livestock production could rely on rain for grazing
animals but in some settings, animals are fed grains and crop residues grown in
rainfed and irrigated systems which have their own source of water. Think of a river
basin and how many times water could get used and reused again for agriculture,
industries and cities. Often cities use water that has already been used several times
upstream. The type of water resources captured or utilised by various sectors is
important to understand when attempting to assess management water resources as
a whole.
© SOAS CeDEP 13
1.3 Tools for assessment of water resources

To understand and assess water resources better, a number of tools are available.
These tools provide a more sophisticated way of viewing, understanding, analysing
and presenting water resources. The various tools provide extensive spatial or time
information for water resources. The additional information provided by using these
tools not only advances our knowledge but is directly relevant and beneficial to
attempts at better management of water resources. While many of these tools are
useful, it is necessary to understand the type of tool and its benefits and limitations.
Tools include the use of: mapping and GIS systems, databases, simulation modelling
and scenarios. Two are considered further here.
• Geographic Information Systems (GIS) – this tool provides a system for

capturing, storing, analysing and managing data and associated attributes
which are spatially referenced to the earth. In the strictest sense, it is a
computer system capable of integrating, storing, editing, analysing, sharing
and displaying geographically-referenced information. In a more generic
sense, GIS is a tool that allows users to create interactive queries (user created
searches), analyse the spatial information, edit data, maps and present the
results of all these operations. The figure in 1.3.1 provides an example of the
use of the GIS tool.
1.3.1 An example of geographically referenced information presented using GIS
Source: IWMI GIS Unit (2008)
© SOAS CeDEP 14
• PODIUM – the IWMI Global Policy Dialogue Model (PODIUM) is an interactive

policy planning and scenario analysis tool which explores the trade-offs and
future demands on water resources on a national scale. It is intended to foster
dialogue and stakeholder participation, and provide a basis for multi-sectoral
planning and analysis. It is not intended to be used as a quantitatively reliable
predictive tool but has been developed as an awareness raising exercise useful
to explore the complex interactions of water scarcity, food security and
environment needs, in the light of increasing populations and changing national
diets. The model computes current and future food and water demands for the
year 2025, based on trends derived from FAO statistics (FAOSTAT) and user
definable scenarios of population growth, changing diets and improvements in
agricultural productivity and/or water efficiency. The model determines, at
national scale, water demand by the various sectors, including agricultural,
industrial and domestic uses and environmental requirements. Designed as an
interactive tool, PODIUM helps users to explore the implications of policy
options, allowing assumptions to be modified and alternative future scenarios
to be evaluated. The model does not produce definitive predictions but rather
enables analysis of ‘what-if’ questions.
© SOAS CeDEP 15
Section 1 Self Assessment Questions
Q uestion 1
List the main components of the hydrological cycle.
Q uestion 2
Describe the process of evapo-transpiration (ET).
Why is this an important feature for understanding water and agriculture?
Q uestion 3
True or false?
(a) The hydrological cycle is a way of looking at the flow of ‘liquid’ water only, as it
moves in and out of our earth’s systems.
(b) If water changes state (for example evaporates), it is no longer considered part
of the hydrological cycle.
(c) To assess water availability for humans it is necessary to look at the stocks of
water held in various reservoirs.
(d) There are various perceptions on what the ‘ultimate’ source of water is.
(e) Blue water refers to water which is treated, while green water is natural water.
© SOAS CeDEP 16
2.0 WATER RESOURCES ASSESSMENT
Section Overview
While the hydrological cycle and hydrological concepts provide us with an
understanding of water resources and their movements and states, a different type
of assessment needs to be done to evaluate water resources in terms of availability,
both overall and in the light of human demand for water resources. As water
resources become widely used and reach limits of availability, competition increases
between the various uses and users. Proper water resources assessment must take
into account the hydrological factors but also the reality of availability, demand and
competition. This type of assessment is vital for undertaking and achieving water
resources assessment.

• define and compare various ways of understanding water availability, explain

the concept of water demand and order reasons for increasing water demand,
as well as give examples of and appraise critically various forms of competition
for water resources
2.1 Water availability

While the hydrological cycle allows us to explore the various inputs, storage, changes
in state, use and outputs of water resources (as sub-section 1.2 showed) the water
availability for various uses is not necessarily simply what exists within the
hydrological cycle. Not all water within the hydrological cycle is available at all times
(or ever in some cases) nor is it available for all intended purposes at all times.
Therefore, water availability is also concerned with who or what water is meant or
needed for and what form of water is required to fulfil their needs. While humans
require freshwater resources (in liquid form) for drinking and domestic purposes and
usually for food production too, plants can obtain water in the form of soil moisture
and animals can supplement their water needs with moisture gained from eating
plant material.
Some important concepts with regards to water availability are:
• Potentially utilisable
This represents the amount of water available in the system which may be possibly
used. This amount reflects water which is reasonably accessible (not too expensive
or difficult to obtain) in terms of source and state.
• Renewable resources
Renewable resources are those resources which may be used again. In terms of
water resources, it is those water resources which even when used for certain
purpose will be available within the hydrological system for use again. However,
these resources may not be available in the same state (changed from liquid to
vapour or soil moisture) or same quality (polluted) as previously. It is important to
consider those water resources which are renewable, as they may often represent a
© SOAS CeDEP 17
vital part of water availability. They represent resources which even if initially used,
are not completely depleted and may have further uses.
• Developed resources
Developed resources represent the proportion of available water supplies which are
already being used or are earmarked for particular uses. These resources are
considered developed since they are already ‘allocated’ to certain uses or sectors and
cannot be used for other purposes (at least at that particular time). Therefore, while
a certain amount of water may be available and we can understand what is
potentially utilisable, the reality of water availability involves recognition of what
resources are already committed to certain activities (eg a country’s domestic
supply).
• Variability and reliability of supply
While a certain amount of water resources may be available according to calculations

based on the hydrological system, there may factors which contribute to variability
and affect reliability of supplies of water resources. These factors may be natural,
such as variability in rainfall (both in space and time) or caused by man due to
technical, infrastructure or human resource failings. This needs to be considered
when planning the use of water resources, as delays in accessing water or too much
or too little being supplied at certain times can affect the needs for activities
dependent on the water resources.
2.1.1 Water accounting model for the use and productivity of water
Source: Molden (1997) p. 5.
© SOAS CeDEP 18
2.2 Water demand

Water demand is the amount of water required from the hydrological system for
various uses and by various users.
It is important to distinguish between withdrawals of water for a use and water

depleted by a use. Water is withdrawn from rivers, groundwater and storage for
delivery to a use such as drinking water, crops, livestock drinking water, aquaculture
or industries. As a result of the use, part of the water is depleted – used in such a
way that it is no longer available for reuse. Water is depleted when it is evaporated,
transpired, incorporated into a product, flows to a sink like a saline aquifer or ocean
or degraded in quality to such an extent it cannot be used again. Water that is not
depleted is available again for reuse. Water is typically allocated based on
withdrawals, not based on depletion.
The term consumptive use is often used for evaporation and transpiration. Water
may be demanded for both consumptive as well as non-consumptive uses.
Consumptive uses are those which require water resources which will be completely
diminished or changed so that those water resources cannot be used by other users
or for other uses. Examples of consumptive use are crop evapo-transpiration and
incorporation of water into manufactured products.
Non-consumptive uses of water resources are those which utilise water resources
without completely diminishing, degrading or changing them and can therefore be
used by others or for other uses. Examples of non-consumptive uses include
hydropower generation. Hydropower generation uses water, often in rivers, and the
power of its flow to move turbines which create power. The water is returned into the
system as liquid water which can then be used as liquid water resources by other
users. However, it is important to realise that there may still be a degree to which
water resource utilisation by non-consumptive uses can still compromise the water
resources for other uses through for example, pollution, change in temperature,
change of location and timing of releases.
Water demand in cities is a combination of consumptive and non-consumptive use.

People require water for drinking and sanitation, which is typically non-consumptive,
but entails degradation in water quality. People also give water to trees and lawns,
and often spread water on streets to minimise dust, which at the same time results
in evaporation and transpiration. Typically 80 to 90% of city water is available for
reuse – as wastewater.
Demand for water resources is increasing. As sectors grow, their needs for water
resources increase. For example, there is an increase demand for water in the food
production sector. This is driven by a number of factors including population growth
and changes in diet and lifestyle, all of which are contributing to the need for more
food and the demand for more water-intensive food types, such as meat products.
Demand management is an alternative to supplying more water. Demand

management approaches try to lessen the ‘need’ for water. For example, do you
need to stand in the shower for 15 minutes, or can you ‘demand’ less water? Price is
often discussed as a means to curtail demand. Water saving practices in irrigation
could also be a way to manage demand.
© SOAS CeDEP 19
2.3 Competition
As changes in both water availability and water demand occur, usually characterised
by decrease in availability or at least increased variability and increase in water
demand, water scarcity begins to occur. Competition arises from this situation of
‘water scarcity’ as all sectors begin to look to mitigate the threat of reduced water
availability. Thus begins a struggle by sectors to meet their own water demand.
One solution proposed to alleviate the situation in which water scarcity becomes
prevalent is the implementation of water demand management strategies. Rather
than attempting to increase supply, water demand management looks at ways of
making better use of the water available.
While demand management strategies are highly desirable and may have significant
impact, they may be politically difficult to implement (eg who would like to pay
more?). Thus they often exist as supplementary activities to the augmentation of
water supplies which becomes the primary goal of sectors experiencing potential or
actual water scarcity. Since there are few viable options for increasing overall supply
of water, sectors begin looking at the water potentially available to them from other
sectors. Globally, about 70% of developed supplies are withdrawn for agriculture and
20% for cities, a ratio that goes up to 90% for agriculture in some developed
economies.
Usually, domestic and industrial uses need small amounts for consumptive use, while
irrigation requires large amounts of withdrawals, of which most is depleted. One way
to meet increasing demands of water in cities is for water to be reallocated into
cities. Since different sectors or uses require and are allocated with varying amounts
of water resources, competition raises questions of allocation and re-allocation of
water within and amongst various sectors and uses. Augmentation of water supply is
therefore sought after or achieved through transfers of water from one sector (or
use) to another. One particularly compelling debate is that of the often heard and
seen idea of moving water away from agriculture to a use with a higher economic
value. Cases of transfer of water from agriculture or from ecological reserves and
aquifers are increasingly apparent.
To mitigate key negative aspects of competition for water, several key components
need consideration. These include the amount of water resources particular sectors
or uses get, the amount of productive use versus wastage incurred, varying priorities
society holds on uses or sectors and productivity and benefit of a particular water
use. However, these components are often subjective (based on opinions) and the
decisions made on allocation and re-allocation are subject to different priorities,
perspectives, knowledge and politics and may shift by persons, geographic location
and time. It is important to consider who is making these decisions and what
knowledge and considerations they are utilising in their decision-making. The kind of
water transfers presented may also depend on the existence of water rights, water
markets or other processes for negotiation.
So if water is reallocated between different sectors and uses, does this matter? What
are and could be the potential consequences of re-allocation due to competition?
Issues of sustainability, environmental conservation, equity and social welfare are
evident in the actions undertaken under the pressure of competition. The
environment, as a ‘silent’ water user often suffers neglect in these considerations. If
these water transfers/reallocations are negative solutions, what alternatives exist? If
© SOAS CeDEP 20
this is a positive solution to water scarcity and resulting competition, how can this be
properly managed to address some of its challenges?
Q uestion 4
Give two examples each of consumptive and non-consumptive uses of water.
Q uestion 5
True or false?
(a) All water in the hydrological cycle is available for use.
(b) If all water available is developed, it cannot be used for other purposes.
(c) Non-consumptive uses of water allow for water to be used for other purposes
but it may be compromised in quality.
(d) Water demand management may be a better way to deal with water scarcity
than focusing on trying to increase or alter supply.
© SOAS CeDEP 21
3.0 WATER SCARCITY
Section Overview
In this section we explore in greater depth the broad concept of water scarcity.
Water scarcity is used very generally to describe a situation in which there is not
enough water available to meet the demand for water, which was discussed in the
previous section. However, in reality water scarcity is much more complex and
deserves closer attention to the various ways it can occur, consequences it can have
and solutions which are required.

• discuss water scarcity, apply various concepts and indicators of water scarcity,
distinguish between different types of water scarcity by country and region and
list reasons for (and against) whether there is a ‘water crisis’
3.1 Water scarcity concepts

What is water scarcity? Here we define water scarcity from the perspective of
individual water users rather than the hydrology of an area. Individuals are water
insecure when they lack secure access to safe and affordable water to consistently
satisfy their needs for drinking, washing, food production and livelihoods. When a
large number of people experience water insecurity, an area may be considered as
water scarce.
Two main types of water scarcity may be identified based on a primary reason for
the scarcity:
• Physical water scarcity
Physical water scarcity occurs when available water resources are insufficient to meet
all demands. This occurs in regions with relatively few renewable water resources
relative to demand, but can also occur when population and thus water demand is
high. In these regions, meeting the minimum requirements for the environment is
known as environmental flows.
• Economic water scarcity
Economic water scarcity occurs when investments needed to keep up with growing
water demand are constrained by financial, human or institutional capacity. Water
may be plentiful in nature but access by people is difficult. Much of this scarcity is
due to the way institutions function eg favouring one group over another or not
listening to the voices of women and disadvantaged groups.
Amongst the billions of people who live in areas facing water scarcity, a large number
of these live in areas of physical water scarcity. Access to water is difficult for
millions of people for reasons that go beyond the physical resources base. These
people live in basins that face economic water scarcity, where human capacity or
financial resources are likely to be insufficient to develop adequate water resources
even though adequate water in nature is available to meet human needs.
© SOAS CeDEP 22
 Consider the following questions.
What kind of water scarcity is prominent in the country where you live?
Can you explain why this may be the case? Can you think of situations
where access to water is easy or difficult? Why is it easy or difficult?
What about other countries you have been to or know about?
Do they have the same type of scarcity? Why or why not? What are the
reasons for their type of scarcity? What are the similarities or differences
with the country where you live?
3.2 Is there a water crisis?

While the global quantity of freshwater is constant, the world population and
freshwater demand are growing. There is enough land, water and human capacity in
the world to produce sufficient food in aggregate for a growing population over the
next 50 years, so in that sense water is not a constraint to global food production. So
why is there talk of a water crisis?
There are many local crises that taken together could constitute a global water crisis.
In some areas of the world demand for water for various uses exceeds supply.
However, for much of the world there is a pending crisis not because of shortage of
water but because of mismanagement of water resources. Avoiding this crisis will
require institutional innovations that allow focusing simultaneously on the goals and
tradeoffs in food security, poverty reduction and environmental sustainability.
 Pause from your reading of this unit and the Key Readings for a moment
and consider whether you think that there is a water crisis?
Is this an appropriate term to use:
– at a global level?
– at a regional level for areas you are familiar with?
– at a national level for countries you are familiar with?
– at a local level for places you are familiar with?
If your answer is yes for any level, why is there one and what do you
think are the solutions that are needed?
If we do not already have a water crisis, is there the potential for a
water crisis? Why or why not?
© SOAS CeDEP 23
Q uestion 6
What is meant by water scarcity? Are there different types? What are these? Explain.
Q uestion 7
True or false?
(a) Water scarcity is only characterised by a lack of water resources.
(b) In some countries water scarcity may not be due to a lack of actual water
resources but may be caused by lack of development, infrastructure, services,
capacity and funds to provide water resources.
(c) Water scarcity is usually the same across regions.
(d) Currently the world is experiencing a global water crisis due to the fact that
world population and demand for freshwater are growing and management of
land and water are inadequate, despite the fact that there is enough land,
water and human capacity in the world to produce sufficient food.
© SOAS CeDEP 24
4.0 DRIVERS AND TRENDS IN WATER RESOURCES
Section Overview
There are a number of factors which affect water resources and how they are used.
It is necessary to understand these larger forces which drive the demand and use of
water resources when considering management options. Some of these drivers are
obvious, while others have been more recently understood. Policies aimed at
changing these drivers can be effective in improving water management.
Furthermore we can learn a lot from the trends and patterns of water use from the
past and current times in order to predict and prepare for possible future water
demand and use. Through an exploration of key trends in water resources
availability, demand and management, we can help to equip ourselves with useful
information for understanding and planning for current and future situations.

• summarise the concept of water demand, compare various factors driving

(increasing) water demand and evaluate various trends and the data and
models used for generating such trends
4.1 Drivers
There are a number of factors, both directly related and indirectly related to water,
which drive the demand for and use of water resources. These factors represent key
reasons for increases or decreases in demand, changes in location and time of
demand and may change over time.
An interesting example of this point is the drivers of agricultural water use.
Three examples of such drivers are:
• Population growth
As population growth occurs, there is greater demand for water both directly for
domestic purposes, as well as through water needs for food production. Larger
populations require more food and this in return often requires more resources,
including water, to produce this added food requirement.
• Income
As incomes increase it has been found that water demand also increases. Increased
incomes lead to changes in lifestyle which are often more water consumptive or
require more water intensive products. This is particularly true of changes in diet
(see next point).
• Diet
As incomes rise, food habits change in favour of more calories and more diversified
diets. Examples around the world point in particular to greater consumption of meat
and dairy in comparison to cereals. Meat and dairy products are more water intensive
products than cereals, so an increase in demand for these leads to an increase in
© SOAS CeDEP 25
demand for and use of water resources. With more wealth, over-nutrition not only
becomes a health issue but also a water issue.
 From your reading so far and own experience, consider whether there
are other factors that could also be having a similar affect? How do
changes in other sectors drive demand for water? Are there possible
factors which could reverse the increasing water demand?
4.2 Trends
A number of key trends over the past 50 years have contributed to the current
situation of water resources use and management. While they often represent
individual events or changes, together they make up a bigger story which has a
larger effect on a global scale. Changes in population, food requirements and land
use have been particularly important factors which have not only changed the
amount of water demanded but also the ratio of water used between green and blue
water. While rainfed areas continue to dominate agricultural production, massive
increases in irrigation (using withdrawal from blue water sources) have characterised
trends over the past years.
As the world population doubled in the second half of the twentieth century, the
global food system was able to respond by more then doubling food production. This
varied worldwide but common factors of agricultural intensification, increased yield
and expanded irrigation all played a role.
Globally, about 80% of agricultural water use (evapo-transpiration) is directly from
green water (rainfall stored in soil moisture) with the rest from blue water sources
(water withdrawals from rivers, reservoirs, lakes, and aquifers). This also varies
between regions and countries depending on the water availability from rainfall and
blue water sources, including groundwater. This variance, combined with different
government policies and investment strategies, leads to differing levels of irrigation.
Demand for water for industrial and domestic uses is growing, relative to demand for
agriculture. As competition for water intensifies, agriculture can expect to receive a
decreasing share of developed freshwater resources.
Interestingly, despite dramatic increases in large-scale irrigation infrastructure over
the past half century, the bulk of the world’s agricultural production still comes from
predominantly rainfed lands.
As water and land resources have been increasingly developed for agricultural
production, important side effects have been noticed. Biological diversity has seen
and continues to experience rapid decline in all the world’s major biomes.
As explored previously, three major factors have contributed to increased food
demand which in turn has lead to increased water use for food production. These are
population growth and changes in income, lifestyle and diets.
© SOAS CeDEP 26
Q uestion 8
List three ‘drivers’ of increasing demand for water.
Q uestion 9
True or false?
(a) As incomes grow, people’s lifestyles and diets usually change towards more
water intensive products and patterns.
(b) There is no difference in water use of different food types.
(c) Irrigated agriculture is the largest producer of food for the world.
(d) As water demand in industrial, domestic and agricultural sectors increases,

agriculture will potentially be out-competed for water resources.
(e) A good way to increase food production is to expand the land areas used for
agricultural production and the amount of water used.
© SOAS CeDEP 27
5.0 FUTURE DIRECTIONS
Section Overview
The management of water resources requires considering the various future
situations which may occur. Water management is closely connected to food
production which is of great concern worldwide. Choices need to be made today
about how water will be managed in order to alleviate issues in the future. However,
it is difficult to know what strategies to adopt. Technology now allows us to look at
the way in which various choices may manifest themselves and the implications
which come about. The use of scenarios which will be explored in this section is one
such tool which allows us to consider, evaluate and choose appropriate actions to
take now for suitable outcomes in the future.
This unit then takes a closer look at other possible strategies for managing water and
alleviating water scarcity. One option is through improving water productivity (the
water required to produce benefits from crops, livestock etc) we may be able both to
address water issues, as well as increase necessary food supply. Another option
comes in the form of upgrading rainfed agriculture. This strategy is to address issues
of water variability through appropriate investment in technology, infrastructure,
policies and practices. The third option explored in this unit is using trade as a tool to
alleviate water scarcity. This sub-section outlines the idea of ‘virtual’ water trade and
how this can play a role in managing water resources on a global scale.

• recall and appraise critically key factors that influence supply and demand for
water; including the concept of virtual water, summarise and apply the concept
of (improving) water productivity and give examples of, compare and outline
arguments for various scenarios
5.1 Scenarios
Food production requires enormous amounts of water and land. With the inevitable
increase in world food demand, it is expected that agriculture will require more land
and water in the future. However, what is not known is what proportions of increase
in these inputs to agriculture will take place and the consequences of these possible
actions. A useful tool to help with understanding the possible situations which may
characterise future agriculture and the consequences of these, particularly on water
and land resources, is scenario building. Scenarios may be modelled around a variety
of possible situations involving a variety of combinations of changes. Additional
important factors, such as increase in demand of resources by other sectors (eg
water in domestic and industrial sectors), effects of climate change, energy
generation, reuse of wastewater and others, can also be integrated into the scenario
building to give a more realistic picture of the focus topic, agriculture, in light of
relevant, future contextual parameters. Software, for example Watersim, has been
developed to facilitate scenario building by allowing for the input of data representing
certain factors. These are computed to reflect what effect these factors have in the
© SOAS CeDEP 28
future. The combination of factors modelled usually reflects various ideas of

theoretical scenarios which are then tested to derive future conditions based on such
a scenario. The building of scenarios allows a snapshot of various future situations
from which decision-making can be influenced, based on the type of situation which
would be most appropriate for the future. Present and future actions can be
influenced to match the conditions defined for a given scenario. This is especially
vital for looking at future agriculture resource use, since without improvements in the
efficiency particularly of agricultural water use, crop water consumption would have
to grow by a magnitude of 70–90% by 2050 to match the same growth in food
demand due to growing populations, rising incomes and changes in diet.
Three broad strategies may address this issue:
• improve productivity in rainfed settings
• increase production in irrigated areas
• expand international trade
Scenarios were developed along these lines to illustrate the trade-offs in these
various strategies. To explore the potential outcomes and impacts of each strategy,
each alternative is highlighted and contrasted with another. For example, a
comparison may be made between a scenario which emphasises area expansion with
a scenario which emphasises productivity improvement. Actual improvements in
agricultural water management will most likely consist of more balanced
combinations of measures rather than one set. It is important to consider the
potential implications of change in a limited number of variables most likely to be
brought about by policy change.
While scenarios are a useful tool, they do present certain challenges and have certain
limitations. For example, impacts on environment and poverty reduction are often
difficult to model or quantify. Limitations in scenario building are often due to finding
the necessary and relevant data to support the modelling exercise.
A number of scenarios have been developed for a range of potential situations and
involving various factors. These all present alternative policy choices and water
management strategies.
5.2 Improving water productivity

Water productivity is defined as the ratio of the net benefits from crop, forestry,
fishery, livestock and mixed agricultural systems to the amount of water required to
produce those benefits. It reflects the objectives of producing more food, income,
livelihoods and ecological benefits at less social and environmental cost per unit of
water used. Put simply, it means growing more food or gaining more benefits with
less water. There are two main types of water productivity:
• physical water productivity
This is defined as the ratio of the mass of agricultural output to the

amount of water used.
• economic water productivity
This is defined as the value derived per unit of water used.
© SOAS CeDEP 29
Water productivity may also be measured specifically for crops (crop water
productivity) and livestock (livestock water productivity).
What has been now well established is that to feed a growing and wealthier
population with more diversified diets will require more water for agriculture on an
average annual basis. However, additional water for agriculture will strain terrestrial
and aquatic ecosystems and intensify competition for water resources. Improving the
physical water productivity in agriculture reduces the need for additional water and
land in irrigated and rainfed systems and is thus a critical response to increasing
water scarcity. By doing this, it also addresses the need to leave enough water to
sustain ecosystems and to meet the growing demands of cities and industries.
There is considerable scope for improving physical water productivity but not
everywhere. In areas of the world that already exhibit high physical water
productivity, the scope for improvements is limited. Scope for improvement remains
in high potential areas in many rainfed, irrigated, livestock and fisheries systems in
many regions of the world. Many farmers could raise water productivity by adopting
proven agronomic and water management practices because raising land productivity
generally leads to increases in water productivity. Many promising pathways for
raising water productivity are available over the continuum from fully rainfed to fully-
irrigated farming systems. These include:
• Supplemental irrigation (some irrigation to supplement rainfall)
• Soil fertility maintenance
• Deficit irrigation
• Small-scale affordable management practices for water storage, delivery and

application
• Modern irrigation technologies (eg pressure systems and drip irrigation)
• Soil-water conservation through zero or minimum tillage
It is important to note that water productivity gains are dependent on the particular
context in which they are taking place. While improving water productivity has a lot
of scope for having an impact on poverty reduction, it is necessary to make sure that
gains in water productivity are accessible to those who need it, especially women and
the poor.
5.3 Upgrading rainfed agriculture

In the face of the food and poverty crises in developing countries and to address the
future trends of greater food requirement in the midst of lower resource availability,
a number of approaches need to be taken. A new emphasis on small-scale water
management in rainfed agriculture is required and as such will involve the redirection
of water policy and large new investments.
Rainfed systems dominate world food production but water investments in rainfed
agriculture have been neglected over the past 50 years. Upgrading rainfed
agriculture promises large social, economic and environmental paybacks, particularly
in poverty reduction and economic development. Rainfed farming covers most of the
world’s cropland (80%) and produces most of the world’s cereal grains (more than
60%), generating livelihoods in rural areas and producing food for cities. The key
© SOAS CeDEP 30
challenge is to reduce water-related risks posed by high rainfall variability, rather

than coping with absolute lack of water. This requires enhancing yields by improving
water availability and the water uptake capacity of crops. There is generally enough
rainfall in farming systems to improve current yields but it is available at the wrong
time, causing dry spells, and much of it is lost. Apart from water, upgrading rainfed
agriculture requires investments in soil, crop and farm management. However, key
to all of this is addressing the rainfall-related risks thus requiring investment in water
management.
5.4 Trade as tool to alleviate water scarcity

While the previous two lessons have focused on actions directly within the agriculture
sector, particularly for agricultural practices, to alleviate water scarcity (improving
water productivity and upgrading rainfed agriculture) additional options exist as well.
Trade may be a useful tool which can be harnessed in ways which can help to
alleviate water scarcity. A growing body of knowledge suggests that international
food trade as an active policy instrument can mitigate local and regional water
scarcity. International trade in agricultural products has been found to offer
opportunities for saving water, through a concept which is known as ‘virtual water
trade’. Virtual water refers to the volume of water used in producing agricultural
commodity. When these commodities enter the world market, importing countries
essentially purchase water resources from exporting countries, thereby saving water
they otherwise would have required. Thus through the trade of agricultural
commodities, a transfer in embedded water takes place, commonly referred to as
virtual water trade (Allan 1998). This concept highlights that water-short countries
can import food from water-abundant countries to save scarce water resources for
‘higher’ uses, such as domestic purposes, industry and environment (Lant 2003).
Virtual water potentially reduces water use at two levels: national and international.
For example, since it takes between 500 and 4000 litres of crop water to produce
one kilo of cereal, a nation reduces water use substantially by importing food instead
of producing it on their own soil and with their own water.
At the global level, water savings through trade occur if production by the exporter is
more water efficient than by the importer. Trade saves irrigation water when the
exporting country cultivates under rainfed conditions, while the importing country
would have relied on irrigated agriculture.
However, there are some potential problems with adopting and relying on this
approach. One problem is political barriers which impede free flow of trade between
countries of the world, especially true in the modern era of geopolitics. Another is the
possible adverse effects of imports on national rural economies and food security,
especially in poor countries vulnerable to fluctuations in world market prices.
© SOAS CeDEP 31
5.4.1 Virtual water flows due to cereal trade in 1995, expressed in crop water
depletion
Source: de Fraiture et al (2004) p. 11.
5.4.2 Virtual water flows due to cereal trade in 1995, expressed in irrigation water
depletion
Source: de Fraiture et al (2004) p. 12.
© SOAS CeDEP 32
Q uestion 1 0
List three strategies for alleviating water scarcity through improving agricultural
water management.
Q uestion 11
True or false?
(a) Scenarios are useful for looking into possible situations the future in order to
support decision-making in the future. This is especially vital for looking at
future agriculture resource use, as without improvements in the efficiency
particularly of agricultural water use, crop water consumption would have to
grow by a magnitude of 70–90% by 2050 to match the same growth in food
demand due to growing populations, rising incomes and changes in diet.
(b) Increasing water productivity is about increasing the amount of agricultural

output.
(c) Rainfed systems are the most dominant agricultural system in the world, in
terms of aggregate area and volume of agricultural production.
(d) Current rainfed areas are operating at the maximum productivity and efficiency
they can, so there is nothing that can be done in these areas to increase food
production – it is only through increased irrigation that this can be achieved.
(e) Virtual water trade is concerned with the trade in water resources.
© SOAS CeDEP 33
UNIT SUMMARY
This unit has provided an introduction to key concepts concerning water resources
and issues and opportunities for their use and management. The information and
learning in this module is a foundation for the rest of the module.
The aim of this unit was to develop a good understanding of water resources. The
management of water resources depends on good knowledge of the ways in which
water resources exist and move within the earth’s system as well as the potential for
and their actual use. Additionally, it is vital that the possibilities for learning, making
decisions and actions for improving the way in which water is used and managed are
thought through and understood. The point of managing water is to address
increased needs and demands, balance competing uses and use best practices for
achieving this in a sustainable manner.
The backbone to the unit was the definition of the hydrological cycle and its
constituent parts as well as key hydrological concepts. This included:
• water input (eg precipitation – in the form of rain or snow)
• water output (eg evapo-transpiration from water or land bodies, transpiration

from plants)
• water storage (eg groundwater, glaciers)
• water use (eg drinking, food production, hydropower)
Water resources were shown to be flowing in a cyclical manner through the earth’s
land, water and atmospheric areas with various changes in state. Water resources
are taken out and put back into the system from various users and uses. Important
to understanding, planning and managing water use are the following concepts:
• potentially utilisable resources
• consumptive versus non-consumptive water uses
• renewable resources, especially renewable freshwater resources
• developed resources
• variability and reliability of supply
There are a wide range of users that demand water. If the demand of each user
grows and supply cannot match this, those users start to feel water scarcity and may
begin to compete for the resources.
This unit showed that water scarcity can vary geographically and also be caused by
lack of available resources (physical water scarcity) or due to constraints to provision
or accessing of water resources (economic water scarcity). There are differing views
on whether there is a water crisis due to growing water scarcity caused by present
and future changes in water demand.
This unit explored drivers of increased demand such as increased incomes, changes
in lifestyle and diets and population growth. The changes in demand will in turn
mean greater competition between sectors demanding water, with agriculture most
likely losing out to industrial and domestic sector demands.
© SOAS CeDEP 34
Water plays a major role in agriculture and food production which is vital for the
survival of the earth’s population. As populations grow, there is need for greater food
supply. The unit exposed some ways of figuring out what to do about this situation
(eg scenarios). The main message was that it will be necessary to carefully evaluate
potential options. This unit finished off by proposing, in opposition to agricultural
expansion and increased water use, three alternative strategies:
• improving water productivity
• upgrading rainfed agriculture
• using trade as a tool to alleviate water scarcity
© SOAS CeDEP 35
UNIT SELF ASSESSMENT QUESTIONS
Q uestion 1
Review the Key Readings then draw from memory a diagram that captures:
• the hydrological cycle
• (some of the) key hydrological concepts
• highlighting blue and green water
Q uestion 2
List and define the key concepts that are used to describe and estimate water
availability.
Q uestion 3
(a) List some of the reasons put forward to suggest that there may be (or there is
potential for) a water crisis.
(b) List some possible solutions to the proposed water crisis.
Q uestion 4
Write a short paragraph about your choice of a possible strategy for water
management in a country or region with which you are familiar. Indicate what the
strategy is, how it would work, and why you chose this strategy.
© SOAS CeDEP 36
KEY TERMS AND CONCEPTS

blue water consists of the total quantity of surface water and groundwater
developed resources represent the proportion of available water supplies which are
already being used or are earmarked for particular uses
economic water is defined as the value derived per unit of water used
productivity
economic water occurs when investments needed to keep up with growing water
scarcity demand are constrained by financial, human or institutional
capacity
evapo-transpiration involves both processes of evaporation and transpiration and

represents a combined loss of water resources from a
watershed
green water otherwise known as soil water, is all water stored in the root
zone that is evaporated by natural vegetation and/or agriculture
hydrological cycle involves the combined flows, use, change in state and storage
of water above and below the ground and in the atmosphere, as
water resources naturally circulate
irrigation/irrigated represents the conveyance of blue water resources to areas for

agriculture use in agricultural production systems. Areas may be fully or
partially irrigated
physical water is defined as the ratio of the mass of agricultural output to the
productivity amount of water used
physical water occurs when available water resources are insufficient to meet
scarcity all demands
potential evapo- is a representation of the environmental demand for evapo-

transpiration transpiration
potentially utilisable consist of that part of the annual renewable water resources
water resources that can be used
(water) productivity is defined as the ratio of the net benefits from (various)
agricultural systems to the amount of water required to produce
those benefits
rainfed agriculture represents those agricultural production systems which receive

the majority of their water from rain
renewable resources are simply those water resources which may be used again
virtual water (trade) refers to the volume of water used in producing agricultural
commodity (which when entering the world market means that
importing countries essentially purchase water resources from
exporting countries)
water scarcity is generally defined as lack of secure access to safe and

affordable water to satisfy needs of water users
© SOAS CeDEP 37

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Centre for Development, Environment and Policy

Water Resources Management

Produced in partnership with the International Water Management Institute (IWMI).

Edited by Laurence Smith.

Units 4, 5 and 10 are partially based on the previous modules:

Revised by Laurence Smith in 2013.

ABOUT THIS MODULE

The module also introduces a range of techniques, methods and information

STRUCTURE OF THE MODULE

WHAT YOU WILL LEARN

• To introduce and critically assess a range of assessment methods and

• To introduce and assess the range of possible policy approaches relevant to

• To explain the economic characteristics of the water resource.

Module Learning Outcomes

• knowledge and critical understanding of the complexity of the water resource in

• ability to critically analyse the importance of continuing water sector investment

• ability to explain critically the rationale for an integrated approach to water

• ability to critically apply a range of assessment approaches and analytical

• an examined assignment (EA) worth 20%

• a written examination in October worth 80%

(b) The EA is submitted by uploading it to the Online Learning Environment.

(e) Plagiarism is a breach of regulations. To ensure compliance with the specific

The content of this book places water management in agriculture in a social,

INDICATIVE STUDY CALENDAR

Part/unit Unit title Study time

Unit 1 Water resources and scarcity 15

Unit 2 Key concepts: assessment and management from basin to 10

Unit 4 Economics of water use 15

Unit 5 Water supply and sanitation 15

Unit 6 Water use in agriculture – small-scale irrigation and 15

Unit 7 Water use in agriculture – large-scale irrigation 15

Unit 8 Inland fisheries and aquaculture 10

Unit 9 Water and ecosystems 15

Unit 10 Policy and change 15

Examination entry July

Revision and examination preparation September

End-of-module examination October

ACRONYMS AND ABBREVIATIONS

FAO Food and Agricultural Organization of the United Nations

IPCC Intergovernmental Panel on Climate Change

MVP marginal value product

O&M operation and maintenance

WCD World Commission on Dams

Unit authors: Charlotte de Fraiture, Nadia Manning and David Molden

Weblinks and Portals 9

1.0 Introduction to water resources 11

2.0 Water resources assessment 17

3.0 Water scarcity 22

4.0 Drivers and trends in water resources 25

5.0 Future directions 28

Unit Self Assessment Questions 36

Key Terms and Concepts 37

• To introduce key concepts of water availability and water demand, provide an

• To introduce the concept of water scarcity, outline arguments for varying

• To provide an overview of water demand, identify and explain key factors

• To introduce future directions and options for water resources through

Unit Learning Outcomes

• define and compare various ways of understanding water availability, explain

• summarise the concept of water demand, compare various factors driving

Unit 1 highlighted the environment as a ‘silent’ water user which is key to

 Molden D, Faurès J-M, Finlayson CM, Gitay H, Muylwijk J, Schipper L, Vallée D,

 Molden D, Frenken K, Barker R, de Fraiture C, Mati B, Svendsen M, Sadoff C,

de Fraiture C, Cai X, Amarasinge U, Rosegrant M, Molden D (2004) Does International