130 billion pints for fish
Right about the time that the streams and rivers in the Deschutes River Basin started to look a little dry, the summer 2007 issue of PERC Reports arrived and reminded me just how much progress has been made in the past ten years toward instream flow restoration using markets and incentives. No place is this more evident than in the Columbia Basin, where participants in the Columbia Basin Water Transactions Program are facilitating large-scale reallocation of water rights utilizing the market approach long advocated by PERC. The Deschutes River Conservancy alone has secured close to 50,000 acre-feet of flow in 2007. If we were indeed buying drinks for our fishy friends, that would amount to a whopping 130 billion pints!
—Scott McCaulou
Program Director
Deschutes River Conservancy
Keep 'em coming
As a former executive director of Trout Unlimited, and past Chairman of the Board of Trustees of the Nature Conservancy’s Virginia Chapter, I want to compliment [Brandon Scarborough] on his excellent cover story, “Buy That Fish A Drink.” As a long-time reader of PERC Reports and its predecessor publications, I found this to be one of the best issues…especially your cover story. Keep them coming.
Our newest regular feature in National Woodlands magazine is “Soil and Water…the Foundation of it All.” The quality of America’s water is largely based on the quality of our forests, most of which are private.
—Keith A. Argow
President
National Woodland Owners Association
Tax incentives for water leasing
Bravo on the diverse coverage of water marketing efforts under way in the summer 2007 issue of PERC Reports. I appreciated the snapshot of various water transaction approaches that are keeping fish wet from the Pacific Northwest to Southern Australia. As a Montanan, I particularly identified with the water leasing examples from the Blackfoot watershed described by Laura Ziemer and Stan Bradshaw.
After working with ranchers on water right management on behalf of the Montana Water Trust, I’d like to emphasize the authors’ points on constraints to water leasing in Montana and the West. Water leases are currently not tax deductible, which acts as an obstacle for landowners who wish to donate all or a portion of their water rights to instream flow. These rights are valuable assets, and permanent donations of such assets for conservation benefits should be recognized by both the state and the federal government in the form of a tax incentive, similar to deductions available for conservation easements. This incentive would increase the demand for water leasing programs and also leave more funding for non-donated instream flow water transactions—in short, it would keep more streams flowing year round.
I would like to underscore the difficulty of water marketing when water rights themselves are not “secure, legally defined, and protected property rights,” as Daniel Benjamin wrote in “Tangents.” Due to the ongoing adjudication process in Montana and the lack of measuring devices on most of the state’s irrigation ditches, it is often difficult to monitor and enforce instream flow transfers. Hopefully, as water leasing evolves and gains momentum in Montana and the West, the states’ ability to protect these water rights matures as well.
—Brianna Randall
Communications & Grants Director
Clark Fork Coalition

Founded 30 years ago in Bozeman, Montana, PERC—the Property and Environment Research Center—is the nation’s oldest and largest institute dedicated to improving environmental quality through property rights and markets.
PERC’s publications, each designed to resonate with specific groups, move ideas generated at PERC to broader audiences.
Research is at the heart of PERC's work, with a focus on the question: What is the link between economic growth and environmental quality?
The goal of PERC’s programs is to fully realize the vision of establishing “PERC University,” where scholars, students, policy makers, and others convene to expand the applications of free market environmentalism.
PERC's fellowships share a common goal of exposing new scholars, students, journalists, and policy makers to free market environmentalism, as well as enable scholars already familiar with FME to explore new applications.
PERC continues to publish and present a broad range of research and discussion through podcasts, videos, and other multimedia channels.