In response to the Great Lakes-St. Lawrence River Basin Water Resources Compact, which protects the region against diversions of water outside of the Great Lakes- St. Lawrence River Basin, the State of Michigan has created a water use program to be implemented by the Michigan Department of Environmental Quality (DEQ). The program regulates large-quantity water withdrawals (LQWs) of greater than 100,000 gallons per day to prevent adverse resource impacts (ARIs), defined as reduction of the index flow in streams and subsequent decline of fish populations. The rivers and their corresponding watersheds in the state were segmented into over 5,000 catchment areas to be used as management units for the identification and mitigation of ARIs. An assessment process consisting of an online screening tool and a site-specific review uses data on aquifer yields, stream index flow, and fish population response to categorize each new or increased LQW according to the risk of ARI. Should an ARI be detected in a catchment, all registered and permitted large-quantity water appropriators potentially will be convened into a water user committee to create a management plan for reducing water use in the area. The dynamics of these negotiations are unknown. This research explores a case study of agricultural irrigators in Southwest Michigan for conditions that influence transaction costs of negotiating and monitoring rules of a water reduction management plan. The identification of these potential barriers and opportunities for collective action results in suggestions for the DEQ to reduce transaction costs and improve the efficacy of the water use program in Michigan.
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