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Heavy withdrawals from the most dependable source of groundwater in the Texas Panhandle, the Ogallala Aquifer, create an impending need for implementing water conservation policies. This study evaluates the policy option of multi-year water allocation coupled with water use restriction in four water deficit counties of Castro, Deafsmith, Parmer and Swisher over a sixty year planning horizon. Results indicate that the water use in the study area declines with progressive restriction rates accompanied by a substantial decrease in the net present value of net returns over sixty years and therefore it is important to analyze the socio-economic effects of implementing such a policy alternative.


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