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Abstract

As the Central Arizona project is being completed and contracts are being negotiated, economic analysis continues to show that neither agriculture nor municipalities would benefit from the project if repayment actually is required according to previously suggested schedules. Earlier analyses were either ignored or condemned as farmers were willing to play a water development game in the face of uncertain future repayment requirements. The game of playing for subsidized water continues even as the buyers now face real costs rather than just some future possibility of incurring costs. Recent analysis is being used to help negotiate favorable delivery and repayment contracts. Experience has shown that once the physical development is in place, costs are negotiable.

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