Researchers representing each of the Colorado River Basin states as well as the Secretary of the Interior were presented with an interactive computer simulation of a progressively increasing drought and were given the collective opportunity to change the ways in which basin-wide and within-state water management were conducted. The purpose of this "gaming" exercise was to identify rules for managing the Colorado River which are effective in preventing drought-caused damages to basin water users. This water management game was conducted three times, varying the collective choice roles for management of the river yet staying substantially within the current institution for management of the Colorado River known as the "Law of the River." The Law of the River was quite effective in minimizing drought impacts upon consumptive water uses. Additional effective drought-coping measures to protect consumptive uses consisted mostly of intrastate water management improvements which states were able to implement independently. The Law of the River did not protect non-consumptive water uses, such as hydroelectric power generation, water-based recreation, endangered species, and water quality from drought, as well as it protected consumptive water uses. Players reached collective choice decisions to cope with rising salinity, equalize storage between the upper and lower basins, and protect endangered species. While these measures had some success, only reductions in withdrawals for consumptive uses, particularly in the upper basin, could have substantially lessened adverse impacts.(KEY TERMS: institutions; gaming; drought; simulation; water management; water policy; Colorado River Basin.)
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