Comparative Evaluation of Alternative Water Governance Arrangements in British Columbia

Abstract: In response to a need for enhanced water governance, water institution reforms are taking place around the world. Common among these reforms is a shift from monocentric to polycentric governance systems, bridging multiple scales of stakeholders through a mix of institutional arrangements. However, even though water reforms identify probable benefits from a polycentric approach, the ability to predict which type of institutional arrangement is likely to yield desired outcomes remains a challenge. This paper applies the institutional resource regime framework and transaction cost economics to evaluate the current water regime in British Columbia and identify if an alternative water governance arrangement can support sustainable outcomes through minimized transaction costs. First, I perform an assessment of the water regime in British Columbia from 1859 to 2016 to identify if the regime typology is headed towards integration and associated sustainable outcomes. Second, I compare the perception of transaction costs associated with a watershed and a regional district alternative arrangement to the current system. Data were collected through 36 surveys and 5 semi-structured interviews with government officials and document analysis. Results confirm a complex water regime in British Columbia and an increase in transaction costs under both watershed and regional district alternative arrangements. Despite an increasing focus on regional districts as an appropriate alternative arrangement to improve coherence, I observe fewer transaction costs associated a watershed arrangement. Nevertheless, the current system, although complex, is perceived more efficient compared to either alternative arrangement.