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Water rights and water market mechanisms are key characteristics to describe water management and allocation in the Limarí Basin in Chile. The 1981 Water Code strengthens private water use rights and declares them freely tradable. Engineering infrastructure, climatic conditions, and institutional capacities in terms of tradable water rights and private water user associations allowed economic development in the Limarí Valley. However, the lack of governmental regulation has led to overexploitation of water resources threatening water security, such as environmental and agricultural sustainability. In the face of climate change and decreasing water availability, the current infrastructural and management system requires reforms.
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