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In the American West, pressures to reallocate water to meet urban demands are rising as cities grow, environmental awareness increases, and climate change threatens existing water supplies. The legacy of Owens Valley, however, raises concerns about reallocation. Although it occurred more than 70 years ago, the water transfer from Owens Valley to Los Angeles still plays an important role in public perceptions of water markets. The transfer is largely remembered as an instance of "theft" and environmental destruction perpetrated by Los Angeles. But a reassessment of the infamous transfer might conclude that there was no theft, as Owens Valley landowners fared well in the land and water sales. In another sense, however, theft did occur: a sharp imbalance in gains from the trade resulted in most of the benefits going to Los Angeles. The Owens Valley case, then, demonstrates the importance of distributional issues in water trades. "Owens Valley Revisited" carefully explores these issues and considers alternative approaches to the Owens Valley transfer that might have yielded better results, offering insights to guide the future of water politics.
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