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Abstract
Computable general equilibrium is a power tool for policy analysis. However, its sectoral nature makes it not particularly user-friendly when the question at hand involves the spatial dimension but in the study of resource and environmental economics, policy decision-making often cannot be completed without spatial reference. Geographic information system, other the other hand is a new tool developed specifically to manage the spatial factor. As more GIS applications are developed to accommodate and enhance the traditional analytical and descriptive capacity of many disciplines, the study of Economics has seen little sign of this integration. This study is an attempt to explore the possible linkages between economic analysis and GIS. Through a water resource management planning process, several types of linkages at different stages of economic analysis are established. It is found that GIS cannot only improve the quality of data that CGE requires; it can also create value-added applications to the results of economic analysis.