The Water Market and its Promise for Managing Water Demand

Existing water governance systems suggest a lot of inefficiencies in managing water scarcity, creating potentially severe risks for many aspects of societies and economies.Water markets are a relatively new and increasingly popular tool for coping with water challenges. They allow the voluntary exchange of water between buyers and sellers. This paper, with the review-analytical approach, introduces the new water management paradigm- demand-driven management - focuses on market-based water demand management, its implications and features, and outlines the potential of this approach to address the challenges of water scarcity. Strengthening and stimulating water saving; increasing access to water; improving community resilience; improving water and allocation efficiency; restoring water to nature; and improving accounting for water usage and availability,are the promises and benefits of a market approach to manage water demand and cope with the scarcity challenges.