Résumé
For neo-classical economists, markets are seen as the appropriate mechanisms to allocate resources efficiently among users. To respond to the increasing scarcity of water resources and to the competition between uses, markets are increasingly advocated as possible alternatives to more traditional policy interventions in the water sector. However, the use of markets to allocate water among users is rare and remain controversial. Based on a review of literature, the present article summarizes the theoretical requirements for water markets to function efficiently. In practice, these theoretical requirements are rarely met. Nevertheless water markets have developed under a large range of water resources, institutional and economic environments. To illustrate the diversity of existing water markets, three examples are selected and described in more details: (i) the reallocation of surface water rights below the Colorado Big-Thompson Dam in the State of Colorado (US); (ii) the localized and informal groundwater and surface water markets that take place in irrigation systems in Pakistan; and, (iii) the Water Banks that have been established in 1991 and 1992 in the State of California (US) as emergency measures to cope with severe droughts. Based on the lessons from the literature on water markets, the final section of the paper investigates the potential for water market development in France. The adequation between the recent water law of 1992, the existing setup of the water sector and water markets is discussed for different water resources situations (surface water and groundwater, structural and conjunctural water scarcity). The conclusion section stresses the need for further analysis of existing water markets and allocation mechanisms, to better identify the factors that would favour or inhibit the development of water markets.