the property rights issue is central in this respect this raises questions as to future sources of finance and asset management securing financial and investment assets may require water user groups to seek privatepublic partnerships to raise capital and develop skills in long term asset management for infrastructure renewal this is because there remain many impediments to water market formation related to for example issues of equity incomplete science specific quantityrelated property rights high transaction costs in creating water markets and the historical allocation of water in addressing these issues a different mix of policies may be appropriate such as the use of welltargeted payments where farmers provide a clearlydefined and verifiable public good or service such as wetland conservation areas a few countries however are using water markets to meet consumptive address the scarcity value of water and environmental objectives