Stakeholder-oriented valuation to support water resources management processes : confronting concepts with local practice

Based on case studies from Cambodia, Sri Lanka and Tanzania this report provides a water valuation framework that reflects the importance of involving stakeholders and of giving equal value to water's economic, social and environmental uses. The economic valuation of water use in agriculture has become a key issue in water resources management because of growing water scarcities, increasing competition from industrial and domestic users, and degradation of ecosystems. However, purely economic valuation of water often overlooks environmental values, such as the role of water flows in maintaining ecosystem integrity, and social values, such as using water to grow food to eat. Since the concept of value is inherently subjective, the FAO report argues that a sound valuation of water can only be done if all water users are involved. The case studies in the FAO report illustrate how water conflicts were resolved through stakeholder participation.