How to Evaluate Water Rights When Buying Farmland

Prior Appropriation vs. Riparian Rights

Eastern states use riparian doctrine (tied to land ownership). Western states use prior appropriation (first in time, first in right). Hybrid states like Texas and California blend both.

Research Steps

1. Identify water sources. 2. Search state water rights database. 3. Verify active status. 4. Assess groundwater conditions. 5. Contact irrigation district.

Red Flags

Missing documentation, junior priority dates, declining well yields, pending adjudication, seasonal flow, contamination.

Valuation Impact

Irrigated vs dryland spread: 2-5x value difference. Always verify water rights convey with sale.