Within the context of the Integrated Water Resources Management (IWRM), the water utilization framework is an economic model which will be dealing with the economic analysis of water use. The major aim of conducting the Water Allocation Model (WAM) is to obtain a tool for quantifying the economic impacts of policy alternatives for improving the efficiency of water use. In particular, the following objectives are pursued:

• Examine determinants of optimal water allocation across various economic sectors:

• Assess determinants of household water demand

• Design policy scenarios for different water management strategies

• Investigate economic impacts of alternative policies for waste water treatment

The study will be conducted at household and sectoral level in which the sectors will include agriculture, industry, mining, power plants, etc. The model will contain components which allow considering existing labor market, environmental and equity (gender and race) restrictions. The study is going to be implemented in close cooperation with the following South African partners: Water Research Commission (WRC) Center for Environmental Economic Policy in Africa (CEEPA).

Water Research Commission (WRC)	University of Limpopo / School of Agricultural & Environmental Sciences

Scientific responsibility for this module lies with the Center for Development Research, Prof. Dr. Joachim von Braun.

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