Mechanisms for Effective Sharing of Agricultural Water Between Head-Reach and Tail-End Farms

Surface water, supplied through a rudimentary canal system, is the principal source of irrigation for many farming communities in the developing world. Due to the physical locations of the farms with respect to the source of water, some farmers have privileged access and get to make the primary decision on how much water to use for themselves and how much to leave for the (secondary) farmers who are further away from the source. This inequity in access can lead to a significant reduction in the productivity of the farming community as a whole, as the primary farmers tend to use more water than the socially optimal amount. To combat this inefficiency, we develop easy-to-implement, decentralized mechanisms that are rational for the farmers and enable the farming community to achieve a socially optimal utilization of water.