How does WWT determine a water right’s market value?
There are four basic methods for valuing water: replacement cost, price comparison, hedonic valuation, and income capitalization. Not all four methods are used in any given valuation. The method used depends largely on the water right, the location, and the local water market, if it exists. Without an active water market with prices to compare to, for a permanent purchase, WWT will typically work with a third-party specialist in water markets, to value the water.
