For example, irrigation water prices in the federal Central Valley Project in California include cost recovery charges (financial policy goal) and an environmental restoration charge (environmental policy goal). Water prices in California’s State Water Project include charges for repaying all construction costs, with interest (financial policy goal), thus ensuring that decisions regarding water use and allocation reflect the full cost of developing and delivering the state’s limited water supply (economic policy goal). Most irrigation occurs in the arid western states, where rainfall is insufficient for producing most crops (USDA, 2006).