Thou shall not covet thy neighbor's water: a look at the journey both Texas and the Middle East must embark upon to solve the kinks in their water regulation.

Considering these factors when evaluating a water issue in Texas or the Middle East will allow for a thorough analysis to take place before a neighbors use crosses the unreasonable threshold. (157) Notably, those areas in the Middle East categorized as "upstream states" (158) have declined to sign the Convention because of the belief it would be a loss for their country. (159) This idea of refusing to give part of one's benefit to another demonstrates an issue regarding the lack of cooperation among neighbors. These neighbors have constructed their livelihoods based on the assumption that fresh water would be available. (160) As seen in the Middle East, settlements were developed near permanent wells and in fertile valleys. (161) Because this resource has been so heavily relied upon, the shortage of water has had the effect of creating fragile relationships between nations, economic sectors, and individuals. (162)

A regional development plan would allow for the fortification of relationships among countries in the Middle East and between neighbors in Texas. (163) In a regional development plan, the area in issue is divided into different sectors, and each sector creates and enacts a water plan for that particular sector. (164) One step in enacting such a plan is the creation of separate control of water resources in a way that will suffocate past grievances. (165) Arguably, this could be accomplished by taking the control of water away from Texas and Middle Eastern governments and essentially turning water over to the private sector. (166) Some have argued that for such a transition to occur, it must be shown that profits can be made from the privatization of water. (167) Because of the increasing scarcity and continual dependence on water resources, it is highly unlikely that the profit aspect of water privatization would be a problem. (168) This privatization of water could also extend beyond mere property rights of water to the "water storage, treatment, and distribution stages." (169) All of this would involve negotiating property rights for the existing resources and any new resources that may come into play. (170) If the private sector were to control the distribution of water, then economic principles, such as competition, would "[breed] efficiency and innovation while protecting consumers from exploitation." (171) Because both Texas and Middle Eastern governments control water resources, there is no competition, and therefore, the protection for consumers against exploitation is replaced by regulation. (172) Even if the privatization of water does not take place, the need for regulation over the quality and amount of water use will continue to be required in the water resource arena. (173) Although this idea of privatization seems drastic, one can look to other countries that have enacted such a system to see that such a transition is possible. For example, in 1988, the British government sold its state-owned utilities to private investors who then sold one hundred percent of its stock to the public. (174) Additionally, the French government designed another model for privatization of water resources. Basically, the French municipalities have the responsibility of running water and sewage programs. (175) In doing this, the municipality has "the option of running their own operations or contracting them via public service concessions." (176) At the very least, some consideration must be given to the idea that the public may benefit from a partnership between governments, which would regulate health standards and water subsidies, and the private sector, which would regulate distribution. (177)

Regardless of whether the water regulation systems are governmental or privatized, it is important that there be more clearly defined lines for neighbors in both the Middle East and Texas. Each neighbor will need to be aware of what areas to harvest and what quantities of water they are entitled to use. More strongly defined boundaries of water resources would also allow for a water source to be controlled more efficiently and, therefore, produce a higher chance of water for future generations. (178) Additionally, defining property rights with regard to water and usage would allow for more equity among neighbors. This equity element will help to steer the view away from a "win-lose" situation toward more of a "win-win" integrated system of cooperation. (179) In order to ensure a smooth transition to a new regulation system, a minimal set of rules should be implemented so both Texas and Middle Eastern neighbors may adjust to the new system. Once people have adjusted to following a more integrated system, then additional regulations may be added as needed to correct problems that may arise. In order to accomplish such a system, there are a number of tools to consider when discussing the enactment of this type of demand management program. (180)

First, one can turn to the area made up of institutions and laws. (181) Supply and demand for water resources falls within the areas of land and water rights, which both fit within the legal arena. (182) Using the traditional institution of the law will help create and monitor water rights throughout time. However, for this legal tool to work effectively, a couple of areas will need to be addressed. (183) For example, both the Middle East and Texas will need to place controls on their current systems by defining "ownership of water" and implementing and enforcing effective remedies for disputes that may arise. (184) More specifically, Texas's government must place stricter regulations and boundaries on the current practice of the rule of capture. (185)

Second, market-based measures such as water subsidies, tariffs, and prices serve as one of the necessary components of a supply and demand system. (186) "Although pricing is currently touted widely, careful analysts see it as a necessary but insufficient incentive for achieving efficiency, equity, and sustainability." (187) As for the use of water tariffs, "[m]ost would argue that subsidies should be explicitly justified; that water tariffs should be designed to encourage conservation, not just to recover costs...." (188) As it currently stands, water is supplied inexpensively to the public. (189) A problem arises with the continuing public growth. (190) Water suppliers have not been required to focus on new technologies that would increase water supply or improve water treatment and distribution. (191) Texas and the Middle East would both benefit from their governments creating incentives for the development of system technologies that would advance conservation and lower water resource costs. (192) Regardless of which specific market-based subsidy is used, one must realize that when enacting any program, there is a crucial need to implement a system that monitors results.

A third tool that can be used in establishing a demand management system is known as nonmarket based measures. (193) These nonmarket based measures include the use of information and consulting services, the application of pressure to act in a certain manner, and the enactment of regulations that can limit the time or quantity of use. (194) With regard to information, it would be beneficial to develop education programs for the public regarding water resources. (195) It is ideal to have these nonmarket resources used in a way that fortifies the use of the above mentioned market-based sources. (196)

The final tool that may be used to create a demand management system is the use of direct intervention. (197) Basically, this area of direct intervention recognizes the involvement of governments in providing services and sewage management programs. (198) This involvement can be used to control decisions as to the location and quality of water. (199) For example, if Texas and the Middle East were to privatize their water regulation systems, both would need to establish programs of intervention that will allow for the private water market to function while at the same time allowing for the government to intervene should the private market step outside an established boundary--for example, health standards.

Outside direct privatization of the water regulation system and the use of demand management tools, one may also look to the establishment of technology that will allow for the increase of water supplies.

B. Desalination