Groundwater resources provide an important input to agricultural production in many semi-arid regions of the world. However, groundwater extraction rates that exceed natural recharge cause aquifer depletions and threaten the sustainability of this vital input for irrigated agriculture. The common property nature of aquifers means that individual irrigators do not always use groundwater in a way that maximizes its value to society. Groundwater management policies are a means to address aquifer depletion concerns and maximize groundwater’s value to society through time. In practice, water resource managers seek cost effective policies that incentivize more efficient and sustainable water use.