Water has been traded in the Western U.S. for decades, but as the region faces intensifying regulations, shifts in crops and drought concerns, water markets are evolving to reflect the changes.

“The idea of water moving between uses and large distances has changed over the last 30 years. In the last five years especially, there have been big changes,” said Matt Payne, principal with WestWater Research, a Boise-based economic consulting firm specializing in water market research, pricing and trading.