Inter-Basin Water Transfers - Emerging Trends' 22675 Hafik Hirji ATER is scarce in many arid countries' water policies to restore damaged and semi-arid regions-the ecosystems. And two newer schemes in develop- Middle East, Eastern and ing areas, China and Southern Africa, both Southern Africa, and parts of designed within the last decade with the benefit of Latin America, the Caribbean, environmental impact assessments (EIAs). The and South Asia. But even in newer cases show that although EIAs have countries with an overall become an important tool for safeguarding the abundance of water resources-Australia, Brazil, environment in water transfer schemes, they are China, Mexico, and the United States-demand insufficient for mainstreaming the environment in exceeds supply in some areas. To address such the absence of sound water policies. Such policies deficits, should give high priority to the ecological value of agencies at the rivers and other bodies of water, and should national, natinal,define explicit criteria and approaches for regional, and reginal,and protecting those waters and restoring damaged local levels often mport aquatic ecosystems. often import water through inter-basin Early Schemes in Industrial Countries transfers. United States SuchIn California, which now has the seventh largest Sc transfer economyv in the world, a variety of federal, state, 4.7 - can have a -basin water transfers were devel- enormous oped over the past 85 years to meet rapidly environmental growing demand. impacts-in the exporting the xporing In 1913, the city of Los Angeles built a 233-mile area, the *. . y .. area theaqueduct to transfer water from the Owens valley importing area, vada. This scheme still and the path an h ahpoides 75 percent of the city's annual supply linking the two areas. The -. aeas.TheThen, in 1937, a Central Valley Project (CVP) exporting area can was funded by the federal government to divert -C cn eperince water from the Sacramento-San Joaquin river reduced flows, L Highlan . delta to southern California. The scheme com- changed Lesotho Highlands, Africa. seasonal prised 20 reservoirs, 11 power plants, 3 fish hydrology, or hatcheries, and 500 miles of canals. In a normal redued dluton. mpotingares ca beyear, it still delivers 7 million acre-feet of water to reduced dilution. Importing areas can be3 milli damaged from inefficient or overuse of water (for . n c rs of fra ad ts example, water logging and salinity buildup), million st mersTe Pfil itis disposal of toxic wastewater, or the transport of nutrients. Imported water can also exacerbate navigatio, anro ion but teaso scouring and erosion in the receiving rivers. This article discusses four cases that illustrate The CVP was supplemented in 1960 by the state- such impacts: two older water transfer schemes in funded State Water Project (SWP), comprising industrial countries, the United States and 22 dams and reservoirs and a 444-mile aqueduct Australia, designed and built 50-60 years ago, from the northern to the southern part of the before the environmental impacts of such projects state. Of the 2.4 million acre-feet of developed were understood. The resulting degradation of firm yield from SWP, 30 percent is used for the environment has catalyzed reforms in these ENVIRONMENT MATTERS - FALL 1998 Water Resources Management This article Impacts of Water Transfer Schemes in California discusses the The CVP and SWP water transfer schemes have had a number of serious and interrelated environmental e environmental impacts in buh northern and southern California. In the north: consequences of I The San Joacuin delta is a habitat for 25 percent of the state's warm water and anadromous sport fish and 80 percent of ts commercial fishery The large amounts of water pumped from the delta to southern Califor- water transfer ia have contribu[ed to: low fresh water outflows in dry years, intrusion of sea water. and high salinity in water supplie; for farmers, urban communities, and wildlife. In addition, large-scale irrigation in the San schemes. Joaquin Vallev has resulted in the conversion of 95 percent of the state's wetlands to farms. causing the migratory bird and waterfowl population to decline from 60 million in the late 1940s to 3 million in the early 1990s Irrigation has also accelerated the leeching of selenium into wildlife refuge ponds, causing many deaths and deformations. In the south: The diversion by the city of Los Angeles of 4 of the 7 Mono Lake tributaries in the Owens Valley has caused the lake level to drop 40 feet, increasing the lake's salinity, threatening its unique shrimp and bird popula- tion, and uncovering stretches of the lake bed that contain high levels of alkali. During wind and dust storms, alkali oarticulates, which are harmful to the respiratory system, pose a major public health hazard. irrigation in the San Joaquin Valley and 70 Since 1987, the San Francisco Bay Delta percent for residential, municipal, and industrial Hearings between state and federal regulatory needs in the south. agencies and major water operators have ted to the devetopment of a comprehensive ecosystems The CVP and SWP improved the welfare of the ptan for protecting the ailing Sacramento-San state's farming communities and aided the growth Joaquin river estuarv of cities and industries. They also relieved pressure on depleted groundwater aquifers, which The 1992 CVP Improvement Act fundamentally had caused severe land subsidence (up to 30-40 changed CVP operations and water allocation, feet) and massive damage to urban and rural making fish and wildtife protection and restora- infrastructure. However, these schemes also tion one of the primary purposes of this water scheme. The Act reallocated 800,000 acre-feet to created massive ecological changes throughout restore valley fisheries and wildhfe, significantty the state, especially in the San Joaquin Valley (see Box).added a $1 illion temperature control device), and established a $50 million environ- Remedial Actions and Reforms. As a result of mental restoration fund. improved knowledge about environmental impacts, growing public pressure, and use of In addition, court decisions in the 1980s and programmatic FIAs to review the impacts of 1990s (the result of lawsuits by local and existing water resources operations, new water environmental interests) have amended the water policies have been legislated. These policies are rights of the city of Los Angeles and reduced altering the operations of many old California diversions from the feeder streams in the Oxvens water projects in order to restore damaged Valley to protect and restore Mono Lake. The ecosystems. In particular: lake level has increased by 4 feet. ANNUAL REVIEW 1 JULY 1997-JUNE 1998 (BFY98) Australia Recent Projects In Developing Countries The Snowy Mountains Hydroelectric Scheme in In light of the environmental consequences of Australia was constructed between 1949 and such early water projects, and growing public 1974. It uses 16 major dams, 7 power stations, a concern, the Bank and other donors now require large pumping station, 145 km of tunnels, and 80 that environmental impact assessments (ElAs) be km of aqueducts to collect and divert 98 percent performed for all water projects in developing of the inflows to the Snowy Mountains into the countries. As the two cases below illustrate, Murray and Murrumbidgee rivers for agricul- however, ElAs by themselves still are not suffi- tural production and to meet urban demand in dent to mitigate major environmental impacts, southeastern Australia, including Syndey and since they are often carricd out late in thc plan- Melbourne. The scheme meets 5 percent of the ning process to justi a project after it has already southeast's total annual energy requirements and been designed. provides 10-33 percent of flows in the Murray and 25-60 percent of flows in the Murrumbidgee. China Irrigated agriculture in the river valleys contrib- utes 25-30 percent of regional output, income, Te Tansfe Pr 0c mTPlin iarly and employment. 9 ae rnfrPoet(W P,i t al and eployent.stages of implementation in FY98, will serve the This scheme, like those in California, was industrial mining cities in Shanxi province. constructed at a time when there was little Water deficits in Shanxi have resulted in farmers concern about the environment. As a conse- qunce,n ibt thd enros nt ecoogia conse- irrigating with untreated industrial wastewater, quence, it too had serious ecological conse-of quences. quences.production, and the population not having In the exporting area, the diversion of the Snowy sufficient water for regular hygiene. The project River and tributaries reduced natural flows to 1 entails construction of a large dam (not Bank percent of those before dam construction, altering funded) and a Bank-funded water transmission habitats, species abundance, and biodiversity. The facility, as well as implementation of institutional scheme also extended salt water intrusion into the reforms, pollution control measures, and an estuary, impacting the estuarine lakes and the industrial waste management and wastewater productivity of farmland collection and treatment strategy Its aim is to on the flood plain. improve water quality and supply and reduce loxic Algae Bloom as a Catalyst groundwater overdraft and saltwater intrusion for Reform In the importing area, into coastal cities, in order to enhance economic the additional water growth and relieve human distress. The toxic algae bloom, as well as growing salin- contributed to destabiliz- ity problems in the Murray Darling basin, cata- ing and eroding the river The EIA carried out during project preparation lyzed efforts to reform the country's water sector, banks and increased determined that the benefits of the project, which began with an audit of water use in the wastewater discharges including improved public health and reduced river system. The audit found that water use would from municipal, indus- pressure on local water resources, would outweigh grow to 90 percent of the natural flows at the trial, and agricultural its environmental and social costs: (a) resettle- mouth of the Murray if policies were not changed. activities. This increased ment of 54 individuals from 16 households and In response, the Murray Darling Basin Ministerial nutrient loads in the loss of land for 1,024 individuals and (b) Council-in a major policy shift-instituted a per- Murray-Darling river increased wastewater generated from the large manent cap on water use in 1996. The cap was basin, particularly volumes of water imported. Instream effects of defined as the volume of water that was diverted phosphorous and the transfer are not likely to be significant. At full from the Murray at 1993194 consumption levels, nitrogen. As a cose- operation, the project will divert only 2 percent of The rest of the water was left for instreamn eco- qluence, during the the mean annual river flow and 5 percent of the logical needs. summer of 1991 the flow in dry years. However, cumulative effects Darling River recorded could be significant if downstream consumers use In addition, the Murray Darling River Basin Coi- the world's largest bloom more water than they are allocated. mission, in conjunction with state and local land of toxic blue-green algae, and water conservation agencies, has instituted which extended for 1,000 Southern Africa innovative measures to improve land use and km (see Box). The algae In18,tegvrm tsoLsthadSuh reduce waste discharge into receiving waters. It bloom depleted the fIca si6 tgne rneat ofpeenh LesothoSot is also planning changes in the operations of dissolved oxygen in the H ignd atret (lement hich dams and other water infrastructure to achieve water, resulting in els.rt Water ro t (e HWP)g wvic i The restaofathe water wasleft foriv insrea eco-eprtwtrfoteSnuOanervri e i Lesotho to water-short Gauteng province, the ENVIRONMENT MATER s FALL 1998 Watar Reso urces Wastewater Discharges in China Are on the Rise Ma. ageret 60- D -Municipal sources 40 40 D0 Township and village industrial enterprises Z 20-- Regulated industries 1981 1989 1995 Note: Wastxxlorer discharles froin township and village industrial enterprises in 1981 are CMITTrated based on the 1989-95 increase. Nii r: N 1PV (LCina Anniroinnoital Varbook, 1996. niUstrial bh Of South Africa. Under the treaty Strengthening EIAs through Institutional South Africa will pay Lesotho royalties for water Reform exported and is responsible for all project costs, These cases show that while environmental including construction, operations and mainte- assessments are an important tool fnr identifying nance, and mitigation of social and environmental the negative impacts of major water proects, they impacts. The project is heing implemented in five are not sufficient to protect and preserve the phases. Phase IA is completed and IB began water resource hase, particularlv if thev are implementation in FY98 (the Bank is providing performed, as they t-picallN are, after important $45 million of the $2.4 billion for phase I B). proJect elements have heen designed. Water 1)olicy7 reforms are needed to ensure that instream Detailed FiV \kire carried out for phases lA uses of water are given as high a priority as and I B, which determined that the economic industrial, agricultural, and other uses, and that benefits of the project would outweigh the ElAs are required well before projects are environmental costs. Phase lB alone involves designed. Sooth Africa has been one of the resettlement of 360 households, destruction if forward thinking countries in this regard. Its ne habitats of endangered and threatened species, Water Law places a bigber prioritv on water induced seismic activity and the flooding of 39 irerents for ecosystems than irost other hectares of wetlands currently under cultivation uses, including energ3 agriculture, and or used for grazing. In addition, in the exporting area, the imiean annual flow at the confluence of Sound water poicy should require that projects TlI, trijc i the SeIIILti1aine aid the Senqu rivers \will be include explicit criteria and approaches to protect siinry t i reduced b\ 40 percent and the resulting down- and restore threatened and damaged aquat prcseii red it i li stream impacts are not known. The Lesotho ecosystems. Such policies are emerging in both Conferei Highlands De Dclopmeint Authority has comnis- industrial and developing countries, and will have I I ~\Ll1a1le 1ti ill sioiied a long-term study to determine required far reaching eonsequences for the operations of ollCzj. kiil instream flows. In the importing area, significant water infrastructure and for the health of the il \h 22, 9 impacts are expected on the Ash River, where the environment. i t Wol Bonk additional water could cause heavy scouring and TCal Report erosion, affectirg the riparian anti aquatic CiMuiiiuities. Rik ili ol/ 1lyr aret noeu (1 (202 458-19941, la,x (2o2)522-kl;67 ANNUAL REVIEW - JULY 1997-JUNE 1998 (FY98)