1.0  INTRODUCTION AND SCOPE

        The purpose of this study was to assess regional water value and the interrelationships between productive activities and water use. The assessment covered the Paso del Norte Region on both sides of the border, using counties as geographical units for the US side and municipios for Mexico. The total area covered: Doña Ana, and Sierra in New Mexico, El Paso, Jeff Davis, Presidio, Culberson and Hudspeth Counties in Texas and the Chihuahuan Municipalities of Juárez, Guadalupe, and Praxedis G. Guerrero.

1.1  Assessment of Water Use by Economic Sector

        Consultants were retained to develop an assessment instrument which could be used to compile available regional economic data and from this, evaluate water use and water cost as related to economic activities. Given the large number of firms, productive activities of the region and the time limitations, it was decided to cluster economic activities. The Standard Industrial Classification System (SIC), was used for this purpose.

        The project goals are to:

• determine water use by economic sector,
• determine the impact of development of these economic sectors on regional water supply and water quality; and,
• make recommendations regarding  sustainable regional water use, considering the types of regional industry, the limitations of water resources in the area, and the value of economic sector to the local and regional economy.

1.  Prepare a water use inventory to cover seven U.S. counties and three Mexican municipalities, in the general area known as Paso del Norte

2.  Complete a water use analysis and projections based on the inventory data, including current water use trends, economic value of current water use, future quantity and quality of water required, potential water sources, potential reuse of waste water, and economic assessment of projections.
 
3.  Present recommendations to include both technical and political alternatives to optimize water use, and achieve sustainability. Recommendations to be based on quality and quantity of water and waste water, as per the different industrial effluents and available sources of water, location of effluents, price of water, water use trends and impacts on present and future supplies.

        In order to provide an overview of regional water use, an inventory of water use by geographic area and economic sector was compiled. The Standard Industrial Classification  system (SIC) was selected as the best mechanism to quickly compile all economic actives. Two digits were used as a classification strategy to aggregate groups of activities, especially the different types of manufacturing on both sides of the border (maquiladoras or otherwise).

        Groups of activities or SIC codes, were then assessed in terms of their relative economic importance within the area, by comparing total employment and payroll in each SIC group  to total regional work force and economic flow.   Available water use data for these groups was used  to estimate average per capita water consumption in each of these activities. The was calculated in order  to be able to identify high water consumers and relate this consumption to the economic importance each represents at the local level.

        A basic matrix was developed to compile and examine available data. Unfortunately data availability and accessibility was not the same on all counties and municipios, so some estimates were of necessity factored into this model. Table 1 shows the headings used for the matrix structure.

        Due to the difficulty of dealing with many different units of water volumes, it was decided to use the metric system throughout these calculations and tabulations. Cubic meters was the basic volumetric unit for water usage on both sides of the border. For example, the final column of the matrix represents average monthly water consumption per employee in cubic meters. With regard to economic data, it was decided to use the U.S. dollar as the unit of measure for these calculations. A rate of exchange of 8.0 pesos per dollar was used.
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• SIC Code based on the first two digits only.
• Based on official information provided by Texas Employment Commission and New Mexico Department of Labor for US Counties, and by Instituto Nacional de Estadistica Geografia e Informatica (INEGI), Instituto Mexicano del Seguro Social (IMSS) and Desarrollo Economico de Juárez, for Mexican Municipios.   Data is presented for monthly increments and is the average of a twelve month period.
• Local and regional water data was obtained from El Paso Water Utilities, Bureau of Reclamation and from the various Counties assessed. Mexican agencies included Juárez JMAS, National Water Commission and the 3 Municipalities involved
• Per capita  consumption of the different employees was calculated from the available data. In some cases, estimates were used based on surveys

        A number of information sources were used on both sides of the border. In general terms data were more readily available for the U.S. side, although there were areas where difficulties were encountered, specifically because water use data is not collected or maintained by economic sector.   SIC codes are not extensively used in Mexico yet, so additional time was spent classifying all the entities. In addition to this classification difference, there are still several unregulated or informal economic activities in the region, which are hard to account for in an evaluation like this.

        The information used to produce the matrixes, and the subsequent graphs, was obtained from official sources or estimated based on procedures described below, and reflects 1995 or 1996 data.  It is important to emphasize that the total area covered by project is not related to water sheds, irrigation districts or any other type of water management areas, but rather to political jurisdictions.

        The following agencies, institutions and/or organizations provided information, data or guidance to complete the matrix and to evaluate the targeted indicators:
 

        In the case of the Lower Valley of Juárez for instance, water meters are almost non existent. The same holds true for a high percentage of the urban locations served. In these cases, the agency assesses a flat rate, regardless of actual consumption.

        It is also important to note the fact that the per capita consumption in agricultural activities is quite high, due to the low number of individuals occupied compared to volumes of water consumed by this sector. According to information provided by the Juárez Lower Valley Farmers Association, farming activities have continued to decrease for a number of reasons, the most significant being: 1) damaged farm soil due to irrigation with untreated sewage from Juárez mixed with industrial discharges, and 2) a strong migration of the rural labor force to the maquila industry.

        In Ciudad Juárez, a survey, which included direct inquires, was conducted to obtain supplementary data which was otherwise not available from official sources. Several private sector and official entities were selected for this purpose. Commercial activities such as gasoline stations, car washers and laundry mats were used as prototypes of commercial entities that are considered high water consumers. With the help of the Department of Education, several schools of different levels were also surveyed. In as much as schools are not economic activities, they represent an important water consumption group under SIC codes.

        The questions included in this survey were: total number of employees, average monthly payroll and average monthly water consumption. Table 2 includes some of the calculation charts used to analyze these economic entities. Participating businesses and governmental representatives were quite cooperative and all expressed an interest in looking at the results of these findings.

        There are economic activities, however, for which information is not available and surveys are not practical. Informal commercial activities such as street vendors in Juárez, had to be assessed based completely on estimated data. Average per capita water consumption from measured commercial activities was used to extrapolate water consumption for representatives of the informal commercial sector.
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  1.   Three flushes, 6 liters. each
  2.   10 minute shower time, 18.6 liter/minute
  3.   Teeth brushing, 0.75 minutes at 3 liters./minute, 3 times/day.
  4.   Hand washing, 0.75 minutes at 3 liters/minute, 5 times/day.
  5.   Shaving, 1.5 minutes, 3 liters/minute, once/day.
  6.   Laundry, 32 liters 3 times/5 persons.
  7.   Air Cooler, 600 minutes 0.75 liters/min/5 persons.
  8.   Garden, 6 liters/minute, 5 minutes, once every 2 days.
  9.   Estimated
10.   Dish washing, 15 liters, 3 times, 5 persons.

        In an effort to validate extrapolated values used for the informal economic activities several field observations were included. With the help of graduate students from the University of Juárez, filed measurements were completed in order to better quantify actual water usage.

        Tables 3 and 4 show some examples of the field measurements conducted by the graduate students using the assumptions and considerations indicated.  Corrections were also made for seasonal consumption such as evaporative coolers  (app. 4 months) and lawn maintenance   (6 months).  Obtained estimates were similar to averages used by JMAS.

        The following is a brief  description  of the field studies conducted:

• A measurement of actual water used by individuals who wash cars. Participating washers agreed to let the students measure actual amount of water normally used in each car wash.  Different types and sizes of cars were considered in calculating an average.

• A maquila plant was visited, and quick one day survey was conducted to assess the average number of times each operator used the bathroom or washed his/her hands in a eight hour shift.

• With the help of the JMAS, a major field study was conducted by shutting all water inlets feeding the Bermudez Industrial Park, except for one well, which was used to measure actual water consumed by this park in a 24 hour period.

• An informal survey was conducted by the students within their departments at the University to obtain additional information regarding personal habits as related to water consumption.

• The same students, under the direction of one of their professors, collected the water used in daily personal activities such as showers, shaving brushing of teeth, etc. The volumes observed were used to validate the per capita consumption average used in different sections of this report.

        The following sections include the water use analysis and projections specified under Task 2 of the Scope of Work for the project. It is important to reiterate the fact that these numbers have to be considered as macro indicators and are not meant to be detailed measurements of specific water use. On the other hand, the data sources used and the quality of the information obtained, give this assessment an adequate degree of reliability.

        There have been other similar studies conducted in Ciudad Juárez, where water consumption was estimated or extrapolated, but none of these have attempted to correlate economic values with water usage. Industrial developers and maquiladora promoters who participated in this initiative, expressed their interest in reviewing the projected figures, as they could help orient future developments in this dynamic border city.

        The JMAS of Ciudad Juárez has recently announced that they will soon implement an aggressive program where new industrial developments will be authorized on a conditional basis, with limits on the monthly amount of water the agency will provide to these new plants. If the new facility requires additional water supply, they will have to incorporate waste water treatment and re-use strategies, as part of their service applications.

        With regard to data from the US side, several sources were used throughout the duration of the study. Agricultural and cattle water consumption for Jeff Davis, Presidio, Hudspeth, Culberson, Sierra and Doña Ana Counties, was supplied by Bureau of Reclamation. Domestic and commercial consumption was obtained directly from the different Counties through various local agencies.

        Although much water data exists on the US side of the border, difficulties arose with the compilation and analysis of data due to the fact that water data is not collected and maintained by economic classifications such as SIC codes.  In other words, although utilities generally charge different rates for municipal, commercial, and industrial uses, and therefore keep records based on these rates, little or no data is kept on use by specific type of industrial or commercial activity.  Therefore water use had to be extrapolated from information regarding quantities of water used in industrial processes, number of employees, and direct investigation of specific activities.

        Unfortunately the data available was for the US counties was 1996, where most of water data for Ciudad Juárez was for 1997.

4.0  WATER USE ANALYSIS AND PROJECTIONS

        To assess water use, data from the US and Mexican areas was collected and then analyzed.  It has been noted previously that different entities keep different records, and this created some problems in order to compare major consumption indicators. Commercial and industrial consumption are recorded differently by each of the agencies involved, and for this reason, only total averages were used in the evaluation.

        Information and data sources reviewed in El Paso such as Bureau of Reclamation and El Paso Water Utilities among others, use different units for their record keeping, such as acre feet, millions of gallons, cubic feet, etc. In all cases, the information used was first converted to cubic meters in order to make these comparisons more objective.

4.1 Water Use in the Area

        The matrix was used to assess economic activities in terms of their water consumption and regional importance. After an initial evaluation of the data, the focus of the analysis turned to industrial activities due to the large numbers of individuals employed in the area and their relative importance to regional economy. The following selected portions of the matrix give a feeling of the type of data collected and how different economic sectors within the different geographic areas of the region relate to each other.

        As indicated above, Annex A includes complete matrixes for all US counties and Mexican municipalities assessed. In the summary presented on Table 5, three selected SIC codes are compared between El Paso County and the Ciudad Juárez area. Water use by these activities can be related to their economic importance in terms of employment generation.

        From an evaluation of the selected examples we can observe how significant electronic plants can be in Ciudad Juárez, in terms of the total water they demand.  However that is because of the large number of employees in this sector. The average per employee consumption is not as high as in other manufacturing industries, where the average per capita consumption is 4 times higher. Most of these electronic plants use little or no water in actual process lines, and thus their effluents are almost strictly sanitary, making them ideal for possible treatment and re-use.

        It is obvious that agricultural activities on both sides of the border use extremely large quantities of water as compared to the payroll dollars they generate and their employee number. The per employee consumption average is relatively similar on both sides of the border, although higher in El Paso, perhaps due to cultural reasons which will be addressed later in this report, but in general terms agricultural activities are quite important to the region, regardless of their consumption/payroll relationship. This sector is a major component of the regional economy and the certainly a cultural asset for both countries.

        Average employee consumption in the industrial sector is quite different for El Paso and Juárez. From the economic standpoint, industrial facilities such as SIC 36, which include electronic assembly plants, represent one of the most important factors of the Juárez economy as they account for over 36% of the total payroll. However, their per capita water consumption is less than 4 cubic meters per month. The same SIC number in El Paso represents only 2.5% of the area payroll, and the monthly water consumption is about 15 cubic meters per capita.
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4.2 High Water Consumers

        Based on the water use matrixes, we can identify several SIC numbers with a high water consumption, and a relatively low index of dollar generation. Such is the case for SIC numbers 14, 29, 39 and 70. The case of hotels (SIC 70) is a good example to observe this relationship. Obviously the personnel employed here are not consuming the high volumes of water required to operate a facility like this.

        Mining and petrochemical industries (SIC 14 and 29) are other examples of high water usage with small number of employees. The nature of these operations require large volumes of water for different aspects of these processes, and in most cases, with relatively low number of employees. SIC number 39 includes a variety of industrial processes which also follow the same general pattern. However, there are other examples where high water consumption is coupled with a corresponding high index of job generation and income. Such is the case of SIC numbers 35, 45 and 54 (which are machinery, transportation by air and food stores respectively).

4.3 Water Use Information and Projections

        As the basic information matrix was being completed, the consultants evaluated large quantities of data and prepare summaries and assessments which were used to interpret the variables involved. Part of this data was prepared in the form of charts which help to visualize the most important elements involved.

        As part of this study, a water rate comparison was conducted between Las Cruces, New Mexico, El Paso, Texas and Ciudad Juárez, Chihuahua. A summary of this assessment is presented in Figure 4. The units used by each of these three agencies as well as the different consumption ranges are indicated. As can be observed in this chart, Juárez presents by far the lowest rates.

        In order to be able to compare units and approximate ranges, an assumed consumption of 20 cubic meters per month (about 5,250 gallons) was used to compare all three rates.  El Paso charges about $14.00 for this volume, $9.00 in Las Cruces, and $8.50 in Ciudad Juárez (about 65% less than El Paso).

4.3.1  U.S. Counties

        Figures 5-A through 5-G are summaries, derived from the matrixes in Annex A, of average water consumption by SIC code in the 7 U.S. counties included in the present study.   These tables do not include agricultural or residential uses, which we can see from Figure 6 are major consumers of regional waters.

        As indicated above, agricultural activities use most of the water in the project area. Figure 6 compares agricultural vs. municipal and industrial water use for El Paso County. Residential, industrial and commercial uses combined represent about 33% of agricultural uses. Industrial and commercial represent about 7% of total regional water consumption.   As can be observed in Table 7.
 

        With less than 7% of water used, it is obvious that industrial activities in El Paso do not represent a heavy water use (as this 7% includes commercial activities as well). Therefore, although reuse and conservation measures should certainly be instituted for industrial activities these measures would most likely have the greatest impact when applied to agriculture and residences.  This type of information is quite valuable in projecting future urban and industrial development for the area.

4.3.2  Mexican Municipalities

        Figure 7, shows the combined total water consumption during 1996 for the three Mexican municipalities covered by the study. Agricultural uses in the lower valley accounts for almost half of all the water used in the area, even though this area includes a large city with a population of almost 2 million. Figure 8 details consumption for Ciudad Juárez metropolitan area, and includes the losses which represent about 20% of the municipal consumption. Total extraction from the Hueco Bolson during 1996 was over 141 million cubic meters with similar consumption patterns as El Paso.

        It was explained by the Junta Municipal de Aguas, that part of the losses are due to a very old and deficient distribution system, especially in the downtown area. Figure 3, as mentioned before, shows how these losses are distributed into the different users of the system. In order to deliver 91 million cubic meters for residential use, over 16 million are lost in various points within the system.

        As explained above, one of the most significant applications derived from the use of the matrix, was the possibility of detecting high water consumers at a glance. A group of SIC codes representing manufacturing activities was selected to better evaluate water consumption within this sector.

        Figure 9 compares major groups of industrial plants in Ciudad Juárez, showing electronic plants as the highest industrial consumer with an average of almost 400,000 cubic meters per month for this group, as was explained earlier. This is about half of all the water used by the industrial sector in Juárez.

4.4 Present and Potential Water Resources

        Perhaps the major difference between the U.S. and Mexican communities evaluated is their sources of water. While the U.S. side uses surface and ground water (from two different aquifers) for their municipal and industrial needs, Ciudad Juárez has only the Hueco Bolson as their only source for these consumers.

        While the city of Juárez is considering tapping into the Mesilla Bolson (perhaps as soon as 1998), extractions from the Hueco Bolson continue to be a critical issue for the area. El Paso currently uses treated effluent for landscaping and other similar activities. Water re-use is still insignificant as a formal alternative in Juárez, although the number of industrial pre-treatment systems in place, has increased in the last few years.   When the waste water treatment plants are completed in Cd. Juárez (scheduled for winter 1999) reuse of treated effluent might become significant for parks, industrial green spaces and agriculture.

4.4.1   U.S. Counties

        All communities on the US side of the Rio Grande/Rio Bravo, except for El Paso, are utilizing groundwater for their municipal and industrial needs.  Agricultural needs are being fulfill by a combination of surface water allotments designated by treaty and groundwater pumping.

        The city of El Paso is unique in the region in that it is both promoting and practicing conjunctive use for municipal and industrial needs. Although Las Cruces is beginning to consider this option also.  Conjunctive use is the combined use of surface and groundwater. As water scarcity and rapid growth have become increasingly apparent, the El Paso Water Utilities has pursued an aggressive program of conservation, reuse, and diversification of supply.   The have worked with regional landowners to purchase and lease water rights so that the city might treat this water and use it.  They have constructed two surface water treatment plants that serve the city during the agricultural season when there is flow in the river bed, and they are working with regional stakeholders to develop a workable system for year round flows of surface water.

        Additionally, the El Paso Water Utilities has purchased a ranch in Valentine Texas, south of El Paso.  The intent of this purchase, to be able to extract the ground water underlying the ranch, has met with regional controversy.

4.4.2 Mexican Municipalities

        The Mexican section of the Paso del Norte Region currently obtains water from two basic sources: the Hueco Bolson and Rio Grande water from the treaty. The second source goes directly to farmlands, and thus domestic, commercial and industrial needs are met with water from the binational aquifer. There has been a number of options addressed by the three levels of government to solve the water shortage the city of Juárez is facing. The only realistic alternatives are the following:

• Continue to use Hueco Bolson water with strict conservation measures

• Tap into the Mesilla Bolson (Conejos-Medanos), and construct an aqueduct over the Juárez mountains

• Build two municipal waste water treatment plants to handle municipal loads, deliver treated effluent to the farmers, and exchange it for their Rio Grande allowances. Build a water treatment plant for river water and use it for municipal use.

4.5  Waste Water Reuse

        Ciudad Juárez has put in place an aggressive water conservation and reuse program which includes supply limits for new industrial and housing developments. This new strategy also includes charging schools for part of the water they use, a service which has been traditionally free.
 

        The JMAS has identified a number of pre-treatment and treatment facilities which may be considered as potential suppliers of gray waters to specific consumers. This plan is considering downstream locations only to avoid expensive pumping systems. Treated effluent from the Juárez Country Club, could be one of the first of such arrangements, by selling gray water to another sports complex or to the Bermudez Industrial park.   Table 8 lists possible candidates for use of gray water in Cd. Juárez.
 
        On the US side of the border waste water reuse is currently underway in El Paso, which is the largest consumer of regional non-agricultural waters.   El Paso has several treatment plants that treat the city’s effluent and discharge it into the Rio Grande for use by farmers downstream.  It also has a state-of-the-art plant, the Fred Hervey Plant, that treats waste water to potable standards and reinjects that water into the aquifer for future use.  Additionally, the Westside Waste Water Treatment and Reclamation Plant is currently expanding, and developing a distribution system to pipe treated effluent to consumers for use on green spaces and in industrial production.

4.6  Future Demands

        It is extremely difficult to project future water use in the area with any degree of accuracy. Extractions from the Hueco Bolson have been rapidly increasing during the last 10 years in an effort to keep up with the high population growth.  As mentioned before, the area has a very dynamic economy, especially in the Mexican side which will continue to fuel  growth.  Estimated future demand for Cd. Juárez is presented in Figure 10, Annex B.

        Agricultural activities use most of the water in this binational region. However, the total area dedicated to farmland on both sides of the border, has been steadily decreasing in the last 10 years. Rapid growth has resulted in changes to land use patterns, and every year more farms are transformed to middle to high level housing developments. This is especially seen in the lower valley of Juárez and El Paso while the Mesilla valley in Doña Ana county has managed to keep most of its agricultural lands intact.

        In the Juárez valley this transfer of land use has tended towards residential areas with the highest market value while that is not the case in the El Paso lower valley where land conversion has resulted in poor subdivisions which lack basic services.  Additionally, although land in the Guadalupe area is still used for farming,  farmers claim that the use of untreated waste waters in their fields has reduced fertility profiles in the area.

        In the metropolitan areas domestic consumption is by far the most important element in the water use chart, followed by industrial and commercial uses.  However, there is a regional misconception that industrial plants use a large portion of the water extracted.  For example in the case of Juárez, less than 20% of maquiladora plants use water in process; their only significant consumption is for sanitary purposes. The entire industrial sector of Juárez accounts for only 6% of the water used.

        Therefore the solution to controlling regional demand so that resources are sufficient to supply that demand, must continue to include aggressive conservation and reuse programs that encompass residential, commercial and agricultural uses as well as industrial.

5.0  ECONOMIC ASSESSMENT

        Although no one knows for sure what the actual population of Ciudad Juárez is, one thing is clear: this border city has one of the most dynamic economies in Mexico. Even when the rest of the country was suffering from the heavy impacts of peso devaluation and record inflation, this municipio managed to grow with more maquiladoras and with lots of jobs. As the rate of exchange continued to increase, minimum wage stayed almost intact, creating a very attractive scenario for industrial developers.

        Obviously this accelerated industrial growth rate has a corresponding water consumption price to be paid. Not only for direct water consumption the new plants may generate, but mainly because of the indirect demands created by the tens of thousands of new residents these new jobs attract. Only in the last few years, have industrial developers addressed the water issue in a more realistic and practical fashion. Water re-use is a concept which is now factored into all new projects.

        Water re-use will have to play a major role in the economic development of this binational area, whether it is from the environmental concept of sustainability, or simply for practical and economical reasons. As indicated above, this is indeed an option which is being taking very seriously both by regulatory agencies and by developers (housing and industrial).

        On the other hand, efforts by both countries to promote water conservation, seem to be paying off. Encouraging trends can be observed in Juárez and El Paso, where total water use per capita has slightly diminished during the last few years. There are some economic factors which have also influenced this behavior, such as higher water rates, and a system of penalties which discourages wastage.

        A comparison of average daily per capita water consumption, shows that El Paso is much higher than Juárez (700 to 380 liters/day respectively). There are several socio economic factors which account for these differences, but perhaps the most significant is the volume of water used for landscaping. Losses also play an important role in this comparison.

        The downtown area of Juárez has a very old distribution system where losses can be quite significant (>20%). This is obviously an infrastructure problem which the local utility is already addressing, and could be resolved in the near future. The number of installed water meters is also rapidly increasing to reduce the deficit which is at almost 50%.   This new metering system will allow for greater monitoring of use and encourage conservation.
 
        Although maquila promoters continue to lure new plants to the area, these new industrial prospects are well aware of water supply limitations, and are being advised of new regulations in place which encourage water re-use, and penalize wastage. More and more existing plants are in the process of installing pre-treatment facilities either as a compliance action or simply due to economic motivation.

        As it was mentioned above, new developments are looking into the possibility of using treated effluents for residential green areas. Constructions firms also using these effluents for some of their activities. Both of these sectors are contacting plants which operate pre-treatment or secondary treatment facilities for quality, availability and cost of effluents.

        Juárez will need to implement the Conejos-Medanos Project (Mesilla Bolson) in the very near future. This additional source will no doubt encourage new developments and industrial activities. However, with the new regulations in place, the use of water resources in a sustainable fashion for the Paso del Norte region, is viewed with a more optimistic approach.

        Scrutiny of the employment and income figures for U.S. counties reveals a vast disparity in the composition of the labor forces and economic bases of these entities.  Sierra County, to some extent Doña Ana counties, and all the West Texas counties with the exception of El Paso County exhibit a marked reliance on services and wholesale/retail trade for employment and income.  Only in El Paso County is there a significant amount of manufacturing employment, where the percentage of employment in manufacturing exceeds the respective state average for employment. In general, wages in manufacturing employment are significantly lower than the hourly average for Texas;  in New Mexico, Doña Ana County manufacturing employees similarly are recompensed at rates below the state average.  In those West Texas Counties east of El Paso County, manufacturing employment is scant.

        For most residents of the Paso del Norte, employment in business or industry is their main source of income to house and feed their families.  Few extractable natural resources are found in the area.  Agriculture and tourism industries rely on the land and natural resources found in the region, but most other businesses and industries rely on their human capital more than the natural environment.  Consistent with the historical data, agriculture today is still the major water using industry in the region.  While agricultural employment is increasing in some areas-notably Doña Ana County-it is declining in others as urban encroachment and agricultural mechanization increases.  In any case, employment in agriculture is seasonal and frequently brought in from outside the region.

        In the region, government employment and employment in industry are the major economic sectors which bring significant new income sources to the region.  In general, the service and wholesale/retail sectors rely on the circulation of  money within the region for their prosperity.  The public sector in the region uses proportionally more water per employee than do most other service businesses because the public sector typically operates larger institutions-schools, parks, roads, and the like.  Most public sector entities have embarked on water conservation and reclamation efforts.    Similarly, industrial operations are not heavy water users.  Chemical and Allied Products,  SIC 28, and Miscellaneous Manufacturing, SIC 39, are the largest water users in the El Paso area, yet their use of water at  180 and 296 cubic meters per employee is relatively small compared to the agriculture sector.  Other industries in the region are relatively minor water users  compared to their employment potential.  Wise use of existing  water resources is important for all sectors of the regional economy, and all sectors rely on access to this vital commodity.  However, no disproportional  relationship between water use and value to the regional economy is evident in the extant figures for the industrial sector.

        Other sectors in the regional economy use water primarily for sanitation and cooling.  El Paso County on average uses significantly more water per employee, primarily attributable to its much larger base of industrial employment.  The water use figures for the service and  wholesale/retail sectors are comparable for  similar sectors in all the counties making up the region on the U.S. side of the international boundary.  As is the case in the industrial sector, El Paso County exhibits the largest water use per employee in these sectors, yet exhibits a much lower water use figure for local government.  These anomalies may be a function of the vastly larger population of El Paso County.

        As a rule, large water using industries have not been attracted to the region.   Large water users, such as textile manufacturing, are not located in the region  now and are not likely to relocate to the region given the water situation.  Moderate users, such as the stone washing businesses, have installed water recycling and treatment facilities.  In addition, the water providers in the region are moving increasingly to reclamation of treated wastewater for large water users-industries, parks, golf courses, and the like.  However, even given conservation and reuse, availability of water is the factor most likely to limit economic growth in the region in the near term.
 

6.0  TRENDS IN WATER USE
 
6.1 U.S. Counties

        Within the U.S. portion of the Paso del Norte region, water providers are pursuing an economic strategy to the allocation of water-through differential pricing, impact fees, and similar types of methods to influence business decisions.  While institutional and political decision makers do exhibit a degree of sensitivity to economic factors, their main criterion seems to be availability-now and into the future.  In a region with scarce natural and monetary resources, costs are inevitably passed along to the end users, and subsidies once absorbed by other economic sectors are being reduced or eliminated.

        These policies appear to be having their intended effects.  Through the existing combination of mild regulatory initiatives – odd/even watering days, landscaping restrictions, etc. - and  pricing, water used for residential  purposes is being reduced on a per household basis.   Similar impacts on economically active sectors is also evident.  Water treatment and recycling  facilities are frequently found in the larger industrial sectors -stone washing, electronics, refining, and the like.   Throughout the region, business and industry are much more conscious of conservation practices.  However, each year the aggregate amount of water used for non-agricultural purposes in the region is increasing because of growth in population.

        Population increases throughout the region are the main factor driving growth in business and industry, and the primary cause of increased water use in the region.  While some agricultural land is still being lost to urban development (particularly in the Lower Valley of El Paso), additional irrigated agricultural land is being developed throughout the region.  Much of the newly developed irrigated agriculture in the region -the Dell City area for instance and the hydroponic tomatoes in Jeff Davis County - rely on underground  water, but larger areas reliant on surface water in Doña Ana County, Hudspeth, and Presidio counties are coming into cultivation.

6.2 Mexican Municipalities

        The water utility in Juárez (JMAS) started an aggressive water conservation campaign back in 1993. This effort has paid off, if not with the intensity anticipated, at least with encouraging results. Average per capita consumption for the Municipio of Juárez has been steadily decreasing during the last three years. Obviously there is still a lot of room for improvement, but thus far this has been a step in the right direction.

        The next important action which must be implemented, is the area of so called “losses”. It is important to remember that JMAS classifies as losses water delivered to schools and other public entities who do not pay for this service. On top of this, an old and deteriorated distribution system, accounts for important “real” losses which hopefully find their way to the aquifer. When financial sources are located to replace most of the downtown distribution network, the city may end up with substantial water savings.

        Waste water re-use or recycling is almost insignificant at this point in the area. With the new municipal regulation for waste water effluents in place, pre-treatment facilities are becoming more and more common within the industrial sector. It is estimated that more waste water treatment facilities have been built in Juárez during the last 5 years, than in its whole urban history.

        Re-use of treated effluents however, is still not very efficient. There are economic, topographical, structural, and even legal problems to be solved before an effluent can be efficiently utilized. In most cases, irrigation of green areas is by far the most common application. This practice will no doubt change dramatically in the next few years. New industrial plants are being requested to factor waste water pre-treatment into their new developments (as part of their EIS mitigation actions). New housing developments on the other hand, are being encouraged to use treated effluents for their public park areas.

        Recently, a new high density housing development in Juárez was able to integrate into its design, the use of treated effluent from a bottling company which operates a waste water treatment facility in the area. There are other examples where small pre-treatment units are selling water to construction companies for road improvements, and even for actual construction activities. Perhaps the important issue here is the fact that the local utility approves of these “sales”, which encourages the operation of these units.

        Another target for intensive water re-use are the different car washers in the area. Whereas most of these small businesses are hardly in the position to invest in waste water treatment units, it is certainly feasible to think in terms of relocation, near facilities with good quality effluents.

        With regard to water use by the public sector, the local agency has also indicated that severe changes have been implemented. For instance, water supply for public schools, which is delivered at no charge, will be restricted during the months school is off. Other public entities will be encouraged to pay for their water and to put in place efficient conservation measures.

7.0  CONCLUSIONS AND FINAL OBSERVATIONS

        Although this study was not designed to be a formal research project with strict applications of scientific methodology, the data collected and the information obtained is ample and can have multiple applications. Agencies on both sides of the border have already expressed their interest in obtaining copies of all the matrices and graphs prepared for this report. The information collected can be used for a number of regional and municipal planing actions, especially long range strategies.

        Due to the diversity of the information collected, it is difficult to make a single final conclusion in this report. As mentioned above, different agencies and organizations may find these findings useful in different ways. However, the value of water in this vast binational area, was indeed the major focus of the study. As indicated above, the basic matrix used to collect data, was designed with the idea of comparing water consumption with economic productivity using average payroll figures.

        With the objective of having an additional tool to assess water value in the area, an attempt was made at comparing water usage versus payroll dollar generation for several economic activities in the Ciudad Juárez metropolitan and lower valley area. Using data from the attached matrixes, a sample summary was prepared to determine how much water is required to generate each dollar of payroll money, Table 9.

        Economic activities with high per capita water consumption can be easily identified in the different municipalities and counties reviewed. Industrial activities with the lowest per capita water consumption can also be singled out, should someone desire to produce a list of activities with higher levels of sustainability. In either case, an “environmental cost” can be inferred by extrapolating the volume of water which is required to generate each payroll dollar.

        As indicated above, Table 9 compares values for the Cd. Juárez region, and several interesting observations can be made from such numbers. In all cases, agricultural activities are difficult to assess, because of the extremely large volumes of water consumed by the sector, compared to relatively low number of employees occupied.

        The average per capita water consumption for the agricultural sector is over 40 cubic meters per month, compared to 7.56 cubic meters per month in some industrial sectors which have a much higher payroll generation power. This comparison is certainly more meaningful within industrial and commercial activities.
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        Providing employment opportunities and an attractive quality of life for residents and employers in the region requires a delicate balancing act for local elected officials enacting legislation and adopting policies which deal with the allocation of water resources throughout the region.   The multiplicity of local governments, the existence of three state governments and two federal governments, and the daunting distances between many of the jurisdictions which make up the region make it difficult to devise cooperative policies and programs for water use in the region.  Amending water compacts between states is difficult enough.  Renegotiating century old international treaties between the United States and Mexico is infinitely more difficult.  Few if any undiscovered and unclaimed water resources exist.  Reallocation of existing water resources is the only mechanism feasible, and that reallocation necessarily involved diminishing water resources for some interests to give them to others.

        Leaving the allocation of water resources strictly to market forces would inevitably exacerbate the existing dichotomy between haves and have-nots.  Throughout the arid Paso del Norte, access to water rights is paramount for economic viability.   Unless a means can be devised to equitably allocate water resources among competing jurisdictions and sectors, sustainable economic development potential will be lost or abnegated.