The existing process to buy, sell or lease water rights is characterized by high transaction costs (legal fees), limited price discovery, information asymmetry and paper driven processes. These characteristics have created a marketplace that is highly inefficient.
- Water rights holders below a certain quantity are essentially barred from participating in the market due to the high transaction costs.
- There is no central marketplace for buyers or sellers to place a bid / sell price and therefore there is limited price discovery for most stakeholders.
- Absence of information and information asymmetry results in a handful of knowledgeable brokers and consultants who make the market and set prices for transactions.
- There are no standardized contracts to purchase, sell, lease or sublease water rights.
- Owners of LTSC & Type 2 Water Rights have no efficient way to advertise, lease or sell to potential lessee or purchaser
- Unmet Demand for Water Rights
- Unused supply of Water Rights
- Failure to make optimum use of an increasingly scarce resource
As a result, the value of the water rights in the market may not be utilized efficiently and can be undervalued or overvalued depending on a variety of facts and circumstances.
We are providing an innovative digital marketplace to lower transaction costs, allow price discovery, free exchange of information in order to increase market participation and efficiency.