Implementing an Agricultural Water Security Market for Southwestern Manitoba

The report outlines a framework for an Agricultural Water Security Market (AWSM) in southwestern Manitoba, designed to mitigate the impact of the expanding oil and gas sector on regional water security. The proposed market would enable companies to achieve 'water neutrality' by purchasing offsets that fund the creation of water retention sites, which in turn support groundwater recharge and provide co-benefits like flood mitigation and nutrient retention. The document analyzes 11 national and international water trading models to inform the AWSM's design, which is intended to start as a voluntary system based on corporate social responsibility before potentially transitioning to a regulated market. It estimates a potential water storage supply of 6,287 cubic decametres against an annual oil and gas demand of 400 to 600 cubic decametres. The report identifies key potential actors, including the Oil Producing Municipalities of Manitoba and Manitoba Conservation and Water Stewardship, and examines the provincial and federal legislative frameworks that could support the market's operation.

• Southwestern Manitoba is identified as an agricultural landscape threatened by limited water availability, with climate change expected to increase the frequency of both water scarcity and flooding episodes.
• The oil and gas sector in southwestern Manitoba is growing rapidly, with approximately 2,749 wells drilled between 2005 and 2011 and nearly 600 more in 2012, potentially impacting regional water security through high consumption and groundwater pollution from fracking.
• The proposed AWSM would function by allowing the oil and gas sector to purchase water quantity offsets, which fund the establishment of water retention sites to increase supplies via groundwater recharge and surface water access.
• The estimated potential water storage supply in the project area is 6,287 cubic decametres, while the annual demand from the oil and gas sector is estimated at 400 to 600 cubic decametres, meaning supply is roughly ten times the demand.
• The AWSM is designed to begin as a voluntary market driven by corporate social responsibility and the desire for a 'social licence to operate,' with the possibility of transitioning to a regulated system over time.
• Water retention projects within the AWSM can provide significant co-benefits, including flood mitigation, nutrient retention, wildlife habitat creation, and biomass production.
• Analysis of Alberta's water market indicates that while it follows international best practices, participation has been modest due to high transaction costs and an opaque, slow process.
• The report suggests that the Oil Producing Municipalities of Manitoba could be well-suited to administer the AWSM, potentially using joint bylaws as a legislative basis.

APA

Voora, V., & Dion, J. (2013). Implementing an Agricultural Water Security Market for Southwestern Manitoba. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/agriculture_water_security_southwest_manitoba.pdf

Chicago

Voora, Vivek, and Jason Dion. Implementing an Agricultural Water Security Market for Southwestern Manitoba. International Institute for Sustainable Development, 2013. https://www.iisd.org/system/files/publications/agriculture_water_security_southwest_manitoba.pdf.

Wikipedia

{{cite report |last1=Voora |first1=Vivek |last2=Dion |first2=Jason |title=Implementing an Agricultural Water Security Market for Southwestern Manitoba |publisher=International Institute for Sustainable Development |date=September 2013 |url=https://www.iisd.org/system/files/publications/agriculture_water_security_southwest_manitoba.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{voora2013implementing, author = {Voora, Vivek and Dion, Jason}, title = {{Implementing an Agricultural Water Security Market for Southwestern Manitoba}}, institution = {International Institute for Sustainable Development}, year = {2013}, month = sep, url = {https://www.iisd.org/system/files/publications/agriculture_water_security_southwest_manitoba.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }