Modeling water trading to support integrated green infrastructure and water resources management in an arid watershed

Developing green infrastructures (GIs) for rainwater harvesting has prevailed in many arid regions, which requires a new water management framework. This paper focuses on a water policy - water trading scheme – design and analysis for integrated green infrastructures and water resource management in a watershed that consists of multiple urban areas. A multiagent model bringing together urban water management and GIs planning models for multiple water managers with hydrological models is proposed to show 1) what the optimized water trading scheme is, 2) how the scheme would affect watershed socio-hydrologic environments, and 3) what the role of GIs in the scheme is. In the model, the water trading scheme design depends not only on the hydrologic dynamics of watershed caused by GIs and but on the social interactions between watershed and multiple urban managers. The proposed model is applied to the Colorado River Lower Basin, which is one of the USA's aridest regions and is planning water trading. Results indicated that a water-trading scheme effectively allocates limited water resources with a minimized system cost in the study area. Results also show that developing GIs to use rainwater resources might further reduce the cost induced by the water trading scheme. However, it might also exacerbate water resource allocation inequity among water users. These findings can help decision-makers design the associated water policy to support sustainable watershed development in arid regions.