Introduction: Water resource management in arid and semi-arid regions, particularly in the agricultural sector, is crucial due to increasing water scarcity caused by population growth, climate change, and water resource overexploitation. Water bank establishment was proposed as an innovative approach to facilitate water storage, exchange, and reallocation for optimal use. This study aimed mainly at investigating the factors influencing farmers' participation in establishing a water bank in Zayandeh-Rud River Basin and analyzing their Willingness to Pay (WTP) for additional water.
Material and Methods: This research employed a quantitative and survey-based approach. The required data were collected through 200 distributed questionnaires among farmers in Isfahan province of Iran, out of which 145 valid responses were analyzed. The Friedman test was used to rank economic, social, and human factors affecting the farmers’ participation in the concerned initiative. Additionally, the farmers' WTP for additional water was estimated by Logit model and then, impacts of independent variables were assessed. The Shazam and SPSS software packages were utilized for data processing, using McFadden’s R² as well as prediction accuracy to validate the model.
Results and Discussions: The Friedman test results showed that economic factors had the highest influence on the farmers' participation in establishing a water bank in Zayandeh-Rud River Basin, while "the farmers' income" (by 10.88 mean rank) and "the issuance of water trading permits" (by 9.50 mean rank) were identified as the most significant factors. In contrast, human-related factors such as "the farmers' literacy and awareness" (by 1.84 mean rank) and "the involvement of local individuals in decision-making" (by 1.95 mean rank) had the least impacts. The results of Logit model indicated a significant effect of economic (0.34), social (0.76), and human (0.16) indices on the farmers’ WTP. The negative coefficient of the proposed water price confirmed that an increase in cost would reduce the farmers' WTP. The model achieved an 86 percent prediction accuracy, demonstrating its robustness in explaining the farmers' behavior. The survey results indicated that the WTP of 48 percent of the farmers for the additional water was estimated by 100,000 IRR, 37.6 percent by 50,000 IRR, and 1.6 percent by above 100,000 IRR per cubic meter while 12.8 percent refused to pay for the additional water. These findings highlighted the role of economic incentives in engaging the farmers in water banking and the necessity of policy reforms to enhance their participation.
Conclusion and Suggestions: There can be concluded that establishing a water bank, along with transparent mechanisms and supportive policies, can significantly contribute to sustainable water resource management. Given that economic factors are the primary drivers of the farmers' participation, targeted subsidies, financial facilitation, and flexible water pricing reforms are essential as well. To ensure the successful implementation, a pilot water market in agriculture should be introduced before broader expansion. Educational programs can also enhance the awareness and adoption of water banking among the farmers, improving long-term sustainability.