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"The chapter highlights the structure of the book, explains its approach and summarizes its main message. Increased water scarcity intensifies the tradeoffs inherent in allocating water to competing uses and turns the policy challenge of managing water resources ever more crucial. The book promotes the view that water policies should be designed and implemented within a comprehensive framework that accounts to the many interconnected pieces comprising water economies."

The state of water resources and the need for a comprehensive perspective -- The water economy -- Supply costs, demands and benefits -- Optimal water policy -- Water regulation -- Conjunctive use -- Case studies of regulatory interventions -- Economy-wide considerations of water management -- Management of transboundary water.

The need for effective pricing -- A literature survey -- Economic principles of irrigation water demand and supply -- A microeconomics analysis of pricing in Morocco, China, Mexico, South Africa, and Turkey -- Interaction between economywide policies and irrigated agriculture in Morocco -- Policy implications -- Pricing irrigation water in Morocco -- Pricing irrigation water in China -- Pricing irrigation water in Mexico -- Pricing irrigation water in South Africa