Third Party Effects of Groundwater Law in the United States:

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Abstract
Abstract. Groundwater is an increasingly important component in the nation's total water supply. Although groundwater is one of this nation's most abundant resources, falling water tables and contamination episodes have caused localized water shortages. This has led to news media accounts describing water supply as our nation's next natural resource crisis. The problem with groundwater supply can be attributed in part to the current system of incomplete property rights. This, in combination with the common pool characteristics of underground water and other third party effects, has resulted in technical and allocative inefficiency. Groundwater hydrology, common property, contamination, and other third party effects are examined in seeking the causes of the current water crisis.

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