“…At times of water shortage, water right seniority guarantees an advantage to receive water from the BOR over juniors, implying more secured water supplies. Senior water right holders can irrigate more acreage of land and are less likely to have curtailed allotment while junior holders tend to predominantly bear the costs of water scarcity (Brent, 2017; Burness & Quirk, 1979; Li et al., 2017, 2019; Libecap, 2011; Schlenker et al., 2007; Xu & Li, 2016); and (2) the BOR does not require interest on project cost repayment and it subsidizes agricultural water costs by charging irrigators according to their “ability to pay.” The BOR's interest and ability‐to‐pay subsidy rates, in tandem, equaled 82% of project costs in 1975 (Moore, 1999). A variable for the average cost of surface water is used to represent surface water price.…”