Cooperative water resource allocation based on equitable water rights

A comprehensive methodology is developed to achieve equitable, efficient and sustainable water allocation in a river basin. Water allocation is carried out in two steps: (1) allocation of initial water rights to water stakeholders and users based on existing water rights systems or agreements; and (2) reallocation of water and net benefits through water transfers to promote equitable cooperation of all stakeholders in a river basin and to achieve efficient use of water. Three methods, prior water rights, modified riparian water rights and lexicographic minimax demand shortage ratios, are proposed for the equitable initial water rights allocation. Using cooperative game theory carries the associated water transfers and net benefit reallocation.