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Water Banking

Making Water Available for new uses: both in stream, and out of stream.

In Washington state, water banking is fairly new.  It is a way to use the market to make water available for new uses, such as increasing stream flows and providing water for development.  In 2003 legislation was passed to allow banking in the Yakima basin using the state Trust Water program.  During the 2009 legislative session Chapter RCW 90.42 was amended to clarify that this tool is available to use for banking statewide.  Most of the banking in our state uses the State Trust Water program as the vault to hold water so that it does not relinquish.

• 2008 Report to the Legislature: Water Banking in Washington State

What is Water Banking?

Water banking is an institutional mechanism used to facilitate the legal transfer and market exchange of various types of surface, groundwater, and storage entitlements.

The term “water banking” is widely used to refer to a variety of water management practices. In general, no single or common definition exists for water banking, probably because there are such a wide range of approaches to water banking. The term “water banking” is increasingly being used within the water sector to describe other types of water management strategies that extend beyond the traditional definition of “water banking.”

How Water Banking Works

Although banking approaches may differ, the common goal is to move water to where it is needed most. Generally, water banking functions better at the regional or watershed level, rather than at a statewide level. This is because it is difficult both physically and legally to transfer water to new uses outside of the basin the right originated in.

Banking is facilitated by an institution that operates in the role of broker, clearinghouse, or market-maker:

• A clearinghouse serves mainly as a repository for bid and offer information.
• Brokers connect or solicit buyers and sellers to create sales.
• A market-maker attempts to ensure there are equal buyers to sellers in a market.

Many banks pool water supplies from willing sellers and make them available as credits to willing buyers.

Making Water Available for new uses - Kittitas Water Exchange

There are five water banks in the Kittitas Water Exchange that you can use to find water for your needs.  The main Kittitas Water Exchange web page that contains links to the following:

• Lamb and Anderson Bank (Upper Kittitas Basin),
• Suncadia and Roan Bank (Swauk Basin),
• SwiftWater Ranch Water Bank (Teanaway Basin)
• Reecer Creek Golf Course Bank (Lower Kittitas Basin), and
• Williams and Amerivest (Lower Kittitas Basin).

Contact

Headquarters Peggy Clifford Department of Ecology PO Box 47600 Olympia WA 98504 360-407-6204 pcli461@ecy.wa.gov

Central Regional Office Bob Barwin Department of Ecology 15 W Yakima Ave, #200 Yakima WA 98902 509-457-7140 rbar461@ecy.wa.gov