Arent water markets a good way to stimulate economic development in Georgia?
Not in this case. Water markets have too many negative side effects (see question 20) and may actually impede economic development. These negative side effects will impact small businesses more than larger businesses that are better able to absorb the higher costs of water. If a firm is considering locating in Georgia and is faced with the prospect of having to bid for water withdrawal rights, it may decide to locate elsewhere (either another part of Georgia where people cannot trade water withdrawal permits, or another state altogether) where it can get the water for free.
