Abstract
The Water Rights system has an extensive impact on the allocation efficency of water resources, which have been endlessly changing with the evolution of social economics. North (1990) pointed out that system transformation is determined by social evolution, and system-related factors might influence economic achievements. In addition, the long-term economic achievements of various economic systems result from the route of system evolution. In terms of the water systems and economic achievements the world over, the U.S. with water resources as scarce as Taiwan's, has been undergoing the evolution and adjustment of water rights systems for two hundred years. And it has been gradually reducing water rights' asset specificity, uncertainly, and infrequency, and has been devoted to reducing the transaction cost and transformation cost of water rights. So it is apparent that economic achievements of American water rights systems are superior to those of Taiwan with an inflexible water rights system. This paper specifically targets American water rights management systems, examming the evolution process and possibly confronted problems. By this, I explain the future transformation direction of the water resources management system, providing references to policy makers in thinking over adjusting the management system of the Taiwan area's waster rights.