The American West faces many challenges, but none is more important than the challenge of managing its water. This book examines the role that water transfers play in managing the region's scarce water resources. It focuses on the variety of third parties, including Indians, Hispanic communities, rural communities, and the environment, that can sometimes be harmed when water rights are transferred. The committee presents recommendations to guide states, tribes, and federal agencies toward better regulation of water transfer processes. Seven in-depth case studies are presented: Nevada's Carson-Truckee basin, the Colorado Front Range, northern New Mexico, Washington's Yakima River basin, central Arizona, and the Central and Imperial valleys in California. The document presents information on factors that have encouraged water transfers, typical types of transfers, and their potential impacts--both positive and negative.