With increasing demands on the water of the Pangani River Basin, coupled with a decreasing catchment runoff due to climate change, water resources are becoming increasingly scarce, and leading to conflicts among users. The objectives of the study described here were to provide first-cut estimates of the value of water in different uses, as well as to review various issues and economic tools pertaining to water resource allocation and financing mechanisms for Integrated River Basin Management. The application of economic tools to water resource management issues in the Pangani River Basin is considered to be an important step towards resolving water user conflicts and improving water allocation and management processes.
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