The economic values of Hawaii's water resources associated with its unique traditional system of water rights and the correlative rights doctrine of the western world are described. Water rights were often allocated according to the percentage of total labor contributed to the water resources development. Acquisition of water rights are limited to public or private grant, prescription or condemnation of previous rights. An exception exists in the case of artesian groundwater for which rights are associated with owners of the overlying land by a correlative rights doctrine. Analysis indicates that the traditional system not only adequately defines water rights, but also ensures greater investment security than the correlative rights doctrine with its inherent tenure uncertainty. In addition, the traditional system allows greater flexibility for surface water reallocation without threatening investment security as offered by the correlative rights doctrine.