PHOENIX, Jan. 7, 2015 /PRNewswire/ -- According to a recent report release by WestWater Research, prices for one of Arizona's major water supplies have remained stable despite continued drought conditions. The report focuses on the market for Long Term Storage Credits (LTSCs) which are widely relied upon in Central Arizona for banking and firming of surface water supplies. LTSCs are created when renewable surface water is stored underground in the aquifer. Owners of LTSCs are permitted to pump that stored water through permitted recovery wells. The credits can be bought or sold among water users within the same Active Management Area or basin.
WestWater's proprietary data on transactions of LTSCs reveals prices have risen an average of 4% yearly since 2008, only slightly higher than the rate of inflation. Although prices have shown only modest appreciation, trading activity has accelerated in response to the recent drought conditions. WestWater expects this trend to continue as water demands grow, surface water supplies become increasingly variable, and new buyers enter the market. The full LTSC market report with detailed price and volume information is available exclusively from WestWater Research at: www.waterexchange.com.
WestWater Research is the leading economic and financial consulting firm in the water industry. The firm provides transaction advisory services, water right valuations and appraisals, marketing services, economic planning, and investment services. Since its inception in 2001, WestWater has advised clients in every western state, including Alaska and Texas, on various water resources projects. The WestWater team excels at identifying and implementing creative solutions to complex water resource issues.
SOURCE WestWater Research
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