The falaj irrigation system and water allocation markets in Northern Oman

Water pricing and water markets can play major roles in improving water allocation, encouraging users to conserve scarce water resources, and promoting improvements in productivity. Water is a precious commodity in Oman. An important source of information about water markets is available from Oman's experience with the established and well-managed falaj (plural aflaj) system in the Northern part of the country. We examine markets for temporary water allocation over a four-year period. Our goals are to describe how water is valued, based on units of time, and to compare the Omani experience with markets in other countries. The characteristics of the system in Oman are unique and represent an unusual example of a market for temporary water transfers within a high price context.