The FeDruary 1966 report of the Committee on Water Resources Research, "A Ten-Year Program of Federal Water Resources Research" (p. 61) contains t h i s statement:The increasing complexity of water resource development deriving both from t h e multiple-use and the l a r g e r and more i nvolved systems maLes the matter of cost allocation increasingly more d i f f i c u l t .Simultaneously there is strong argument f o r increasing part i c i p a t i o n Ly project beneficiaries i n cost sharing through d i r e c t repayment o r purchase of products and services. There i s , however, no current research by Federal agencies e i t h e r on the technical problems of cost allocation o r the socio-economic impact of cost sharing. aspect of most works A t the time of the report there were plans f o r only a few s p e c i f i c research projects i n t h i s category and even these have been slow i n developing. Furthermore they would barely scratch t h e surface of the great body of additional knowledge and understanding t h a t appears t o be these aspects of water resource management.Despite the dearth of s p e c i f i c studies of c o s t allocation and cost sharing problems i n r e l a t i o n t o need, there is evidence i n current l i t e r a t u r e of growing concern and p o t e n t i a l f u r t h e r inquiry i n t o many matters d i r e c t l y and i n d i r e c t l v r el a t e d t o these subjects.The Bibliography on Socio-Economic Aspects of Water Resources Research presents a selected l i s t of material published primarily i n the period 1955 t o 1965.of cost a l l o c a t i o n and cost sharing in water management with a view towards i d e n t i f i c a t i o n of approaches f o r research t h a t might lead t o b e t t e r understanding and ultimate improvem n t of these important phases of water resource management.
needed t o improveThe purpose of t h i s paper is t o review the s t a t e of t h e a r t
COST ALLOCATIONIn Federal p r a c t i c e , a t l e a s t , and t o an increasing extent throughout the f i e l d of water management, the term "cost allocation" is used exclusively t o r e f e r t o the process of assigning t o each purpose of a multiple-purpose p r o j e c t an appropriate share of the t o t a l multiple-purpose cost and is not used t o r e f e r t o the process of determining how and by whom the costs w i l l be borne.For the l a t t e r purpose, other terms such as "cost-sliaring," "repayment," e t c . , are used.
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