January 2001
Preparing for the Storm: Preserving Water Resources with Stormwater Utilities
By Barrett P. Walker
Executive Summary
Common practices for protecting water resources often fail to maintain either good water quality or healthy ecosystems. This failure is not due to a failure to control pollutant releases of sewage and industrial effluent so much as it is due to altered hydrology caused by the handling of stormwater runoff. Numerous studies link uncontrolled stormwater runoff from areas with impervious surface exceeding 10 percent to a rapid decline in water quality and stream health. Streams draining residential suburbs with typically high levels of impermeable surface experience two to five times the stream-channel enlargement of areas with less impermeable surface, endure increased flooding, are prone to low flow during droughts, and are biologically nonsupporting.
Traditionally, public entities have managed urban water resources using what might be characterized as a civil engineering, or technocratic approach that treats stormwater as a waste product of development. But the hydrologic cycle is too complex to respond predictably to such a rigid, narrow approach. Moreover, this approach reinforces, or even encourages, land-use practices that can substantially disrupt the hydrological cycle.
Responsibility for stormwater management is generally dispersed between various government agencies and departments. Stormwater systems are rarely built to handle runoff from anticipated future development. Inadequate design coupled with a lack of funds for maintenance often force managers to react to problems such as poor water quality and flooding with short-term, piecemeal solutions.
A number of political jurisdictions scattered across America are implementing innovative approaches to stormwater management. One such approach is the creation of user-fee based stormwater utilities to improve urban watershed and stormwater management. Case studies show that communities adopting this form of management can produce better water quality, healthier urban ecosystems, and improved quality of life. Such systems link the decisions of people who impact stormwater flows to the stormwater management system directly through a fee system linked to usage and impacts.
The cost-based, user-fee-funded stormwater utility encourages the recognition of stormwater as a resource, not simply as an event to be managed. The utility concept focuses management in a single organization, which can be public, private, or some combination thereof. Creation of a utility allows for dedicated infrastructure and management funding, with fees tied to impacts. The approach enables development of comprehensive preventative and enhancement programs.
New federal requirements for stormwater permits affecting smaller cities and court-mandated enforcement of the Clean Water Act on a watershed basis are spurring many municipalities to consider the user-fee concept for dedicated funding of improved stormwater management. Over 350 stormwater utilities have been formed nationwide, most in the last decade.
Stormwater utilities can provide an equitable means for many communities to fund improvements in water quality and reduce flood damage. However, achieving the goal of swimmable and fishable waters stated in the Federal Clean Water Act may eventually require additional steps such as comprehensive water resource management that combines water supply, sanitary sewage, stormwater drainage, and wildlife protection under a watershed-scale integrated water utility.
Three case studies illustrate the experiences of cities that have established stormwater utilities. Stormwater utilities can encourage development that uses natural hydrological cycles to maintain water quality and flourishing ecosystems. Bellevue, Washington, which established one of the first stormwater utilities in the nation, demonstrates that designing "with nature" can reduce the negative impact of impervious surfaces on aquatic systems, while creating highly desirable neighborhoods. Charlotte, North Carolina shows that stormwater controls can be retrofitted to already-developed neighborhoods through bioengineering of retention ponds and other steps such as stream-habitat improvements. Atlantas experience is more mixed, showing how the technocratic approach to water management is unsustainable, and a case history of mistakes to avoid in establishing a stormwater utility.
Rather than adopting growth boundaries or other regulatory approaches that put broad areas of private land off-limits to development, this study recommends that a market-based approach integrating economic and ecosystem needs could be implemented based on the following principles:
This study recommends that a market-based approach integrating economic and ecosystem needs could be implemented
A. The Technocratic Approach is Limited*
C. Urbanization Causes Increasing Impacts*
D. The Economic Importance of the Hydrologic Cycle Is Ignored*
New Market Approaches in Action*
A. Bellevue, Washington: User Fees Tied to Impervious Surface*
B. Charlotte: User Fees, Rewards, and Private Contracting*
Other Relevant Reason Public Policy Institute Policy Studies*
Part 1
Cities rely upon a clean supply of fresh water for their economic health, yet the expansion of urbanized areas can threaten this vital resource. Until recently, urban growth was seldom constrained by a shortage of clean water because high-quality supplies were relatively abundant in most areas of the United States. But "water wars," originally limited to the arid West, now erupt even in the humid Southeast, as municipalities and states wage legal battles over access to the remaining unspoiled water sources.
Traditionally, public entities have managed urban water resources, using what might be characterized as a civil engineering or technocratic approach. But the hydrologic cycle is too complex to respond predictably to such a rigid, narrow approach. Moreover, this approach reinforces, or even encourages, land-use development practices that can substantially disrupt the hydrological cycle.
Under the traditional approach:
A number of adverse impacts occur as the result of these traditional development practices:
Urban development practices that clear-cut land raise summer temperatures and lower dissolved oxygen in streams, stressing aquatic ecosystems. Removal of the tree canopy also increases runoff of stormwater and sediment, and the higher temperatures of urban heat islands can increase smog formation, stressing humans and natural systems.
The combination of these impacts undermines the hydrologic cycle required for ecosystem health and human well-being. Although specific conditions vary based on local development patterns and hydrology, most of the East and an increasing area of the West are affected. Dealing with these negative impacts creates huge costs as communities age.
A. The Technocratic Approach is Limited
Atlanta provides an example of how the current technocratic approach to water management is unsustainable. The Chattahoochee River, by far the largest source of water to Metro Atlanta, was dammed north of the city during the 1950s, forming Lake Sidney Lanier. Water released by the dam supplies drinking water to more than three million Atlantans. In response to widespread concerns that development in the watershed surrounding the lake was leading to siltation and water quality problems, a $2-million study was commissioned. Released in 1997, the study estimated it would be only 15 years before silt and other pollution from unchecked growth would kill the fish in the lake.
A second reservoir northwest of the city is Lake Allatoona on the Etowah River. A pipeline was proposed to transfer water from Lake Allatoona to Lake Lanier in order to meet Atlantas growing needs. But due to rapid development and its smaller size, Lake Allatoona is filling with silt even faster than Lake Lanier. A study on Allatoona concluded the lake might be unable to support fish within 10 years. Although strong opposition makes it almost certain the project will never be built, it illustrates the type of planning characteristic of the technocratic approach that emphasizes large public works projects to store, transport, and treat water, rather than protection of water at its source.
Such failures cause significant environmental damage and can impose significant costs on municipalities. An example of these costs is provided by one of the 10 counties in the Metro Atlanta area. Cobb County, which draws water from Lake Allatoona, reported a $300,000 increase in the cost of treatment chemicals in 1999 out of a $4-million budget. Although increasing treatment costs for drinking water are only a tiny fraction of the full cost of damages that accrue from such failed management practices, the Allatoona example is a useful reference point.
Although poorly treated sewage and other types of pollution are major causes of urban water-quality impairment, the key condition limiting the recovery of urban streams in most locations is altered hydrology, including stormwater runoff.
A number of studies link uncontrolled stormwater runoff from areas with impervious surface exceeding 10 percent to a rapid decline in water quality and stream health. Streams draining areas with 25 to 30 percent impervious cover, typical of residential suburbs, experience stream channel enlargement from two to five times, increased flooding, and reduced biological-support functions.
For example, historic Druid Hills in metropolitan Atlanta serves as the site for a paired watershed study in which two nearby catchments, nearly identical except for different levels of impervious cover, were intensively studied over time to assess comparative conditions and impacts. Figure 1 shows a birds-eye view of the two catchments. The catchment in Fernbank Forest, an urban forest preserve, serves as the reference watershed. Impervious surface area in the Fernbank Forest watershed was measured at only five percent. The other watershed in the comparison, with 19 percent impervious cover, is a residential neighborhood surrounding Olmsted-designed Deepdene Park.
Figure 1: Aerial View of Paired Watershed Study Sites in Atlanta

Source: Illustration and data by Author, aerial photos DeKalb County, GA.
The two watersheds shown in Figure 1 are nearly identical except for the amount of impervious surface area associated with residential development. Fernbank, with 5 percent impervious area, was drained by a healthy stream that exhibited few signs of erosion. Deepdene, at 19 percent impervious area, had an unhealthy stream scoured by surges of stormwater from surrounding roads. During dry weather, the stream draining Deepdene had less base flow than the stream draining Fernbank.
Both watersheds are located four miles from the center of downtown Atlanta. Neither watershed had point-source discharges of pollution or sewer lines running near the streams. As Figure 2 shows, stream health in the forested Fernbank watershed was consistently in the excellent category.
"Water wars" now erupt even in the humid Southeast, as municipalities and states wage legal battles over access to the remaining unspoiled water sources.
Figure 2: Stream Health Measured By an Index of Biotic Integrity Based on Standard
Collections of Organisms Known as Benthic Macroinvertebrates.

Note: Stream health measured by an index of biotic integrity based on standard collections of organisms known as benthic macroinvertebrates. These are stream insects and other small invertebrates consumed by fish. The index integrates impacts from factors that adversely affect water quality over a period of time. The sampling procedure is inexpensive and easy enough for use by schools and community volunteers. The results shown here were measured by the author using the Georgia Adopt-A-Stream Index. schools and community volunteers. Independent professional surveys conducted at the same sites in 1997 and 1999 using an index of biological integrity showed essentially the same results.
Source: Author
Even though the headwaters showed some early signs of erosion from surface flow of stormwater off paved areas bordering the watershed, most of the stream looked healthy, with vegetated banks as shown in Figure 3. Note that in Fernbank, none of the paved areas drained directly into the stream.
A number of studies link uncontrolled stormwater runoff from areas with impervious surface exceeding 10 percent to a rapid decline in water quality and stream health.
Figure 3: Stream Draining the Fernbank Watershed

By comparison, as Figure 4 shows, the stream draining the lightly developed residential neighborhood surrounding Deepdene Park was badly eroded by stormwater discharged from road-drainage culverts. Its biotic health was fair on average, varying from poor following a storm event to good after a long period of favorable weather.
The impaired condition of the Deepdene stream was best explained by changes in stream flow and sediment loading, as shown in Figure 5, caused by stormwater runoff from impervious surfaces.
Figure 4: Stormwater Culvert Carrying Road Runoff Into the Head of the Stream
Draining the Deepdene Watershed

Because the human economy depends upon the hydrologic cycle, policy makers need science-based measures of the systems health.
In Figure 5, the increase in impermeable surfaces causes an increase in discharge following rainfall and a decrease in discharge (base flow) during dry weather. A dramatic increase in stream-borne sediment accompanies the surge of stormflow in the developed Deepdene Watershed, whereas in the forested Fernbank Watershed stream sediment increases only slightly. With no active clearing of land, most of the sediment comes from stream bank erosion. (These hydrographs were taken from stream gage recordings in the two watersheds).
The paired watershed study demonstrates that impervious cover is a good indicator of overall stream health.
Figure 5: Changes in Stream Flow Following Urbanization
(Steam Hydrographs: Comparing Runoff of Developed and Undeveloped Watersheds)

Changes in stream flow following urbanization for a developed watershed (Deepdene) and a relatively undeveloped watershed (Fernbank). A hyetograph of rainfall (rain intensity over time) and hydrographs of the resulting stream runoff for a thunderstorm of 18 mm or 0.7 inches or rainfall on April 11, 1995 in Atlanta, GA (Data collected by the author from a rain gage, two simultaneously recording stream gages, and measures of suspended sediment). The increase in impermeable surfaces in the developed watershed causes an increase in stream discharge following rainfall and a decrease in discharge (base flow) during dry weather. A dramatic increase in stream-borne sediment accompanies the surge of stormflow in the developed watershed (Deepdene), whereas in the forested, mostly undeveloped watershed (Fernbank) stream sediment increases only slightly. With no active clearing of land, most of the sediment comes from stream bank erosion.
Source: Author
"The United States still has no adequate database on water quality. Nevertheless, water in the United States is clean and its quality has been improving over the last 20 years."
"There are two very conflicting messages. A lot of rivers are cleaned upyou can swim in them now. . . . But when you look deeper, many of the nations rivers are in worse shape than they have ever been."
The opinions expressed above represent two very different points of view, yet both may be correct depending upon the authors analytic framework. Many of the most egregious cases of water pollution have been cleaned upthe Cuyahoga River in Cleveland that caught fire in 1969 will almost certainly never catch fire again. Yet scientific evidence supports the view that many of the nations surface waters are losing their ability to support life. As described later in this report, stream health is particularly poor within and downstream from urban areas.
Currently available data help illuminate the nature of this water-quality problem. Table 1 shows National water quality data compiled by the U.S. Environmental Protection Agency (EPA) from reports submitted by the states based on meeting so-called designated uses, as required by the 1972 federal Clean Water Act. Designated uses include fishing, swimming, and drinking.
Item
Water systems assessed
Meeting designated uses
Clean Water Act goal of fishable
Clean Water Act goal of swimmable
Notes:
- = Less than one percent of assessed waters 1 Excluding Great Lakes
Sources include USDA, ERS, based on Environmental Protection Agency National Water Quality Inventories, 1988, 1990, 1992, 1994.
Source: United States Department of Agriculture, USDA Handbook, No. 712 (Washington, D.C., July 1997).
A major problem with state data is that methods for collection and analysis are not subject to uniform quality-control procedures. This does not mean that quality control is completely lacking, but the procedures vary. The sites selected for testing may also bias the results since there is no nationwide randomized sampling procedure. Nonetheless, very different impressions of water quality can be conveyed using the same source.
Someone promoting the view that water quality is not a problem could accurately state that only 14 percent of Americas rivers surveyed in 1994 did not meet their designated uses. Although accurate, the statement is misleading. It does not mention that only a small portion (17 percent) of river miles were surveyed or that many of the river miles were only partially supporting (22 percent), which means that the waters met their designated use only part of the time and were therefore impaired. On the other hand, someone promoting the view that water quality is a problem could accurately state: "All that can be said with certainty is that 11 percent of our river miles were not impaired in 1994." This statement is accurate but misleading because it implies that 89 percent of rivers are unhealthy.
Because the human economy depends upon the hydrologic cycle, policy makers need science-based measures of the systems health. The cycle consists of a combination of physical and biological processes. Due to the complexities of atmospheric circulation, measuring the physical component is fraught with as many difficulties as those facing climate-change researchers addressing the question of global warming. A more feasible and less controversial approach is to measure the biological component of the system as reflected by the health of aquatic organisms. This increasingly applied approach uses science-based indices of biotic integrity. During the last decade, 30 states plus the District of Columbia began surveying waters using measures of ecosystem health. Although completed surveys cover only a tenth of all surface waters, half the waters surveyed are biologically impaired.
More extensive surveys are available for water meeting designated-use categories (fishing, swimming, and drinking) and for aquatic species threatened with extinction. Designated-use surveys have been reported by states for half of all United States surface waters. According to the U.S. Environmental Protection Agency (EPA), the surveys show that 40 percent of surveyed waters are impaired and that 50 percent of impaired rivers are affected by urban and construction sources of stormwater runoff.
Although aquatic-use surveys are the most complete surveys available, they are incomplete indicators of aquatic health. The surveys are based primarily on a series of physical, chemical, and bacterial tests. Because the tests are generally spot checks, not continuous measurements, they frequently miss events (such as post-storm pollutant spikes, or sewage spills) that can kill entire communities of higher aquatic organisms (and sicken humans). Chemical surveys that are complete enough to screen for the thousands of possible contaminants are prohibitively expensive. Hence, more affordable, less complete surveys are the norm. By comparison, sensitive biological surveys are relatively inexpensive and are considered by many experts to better reflect the cumulative impacts of altered hydrology, habitat loss, and chemical toxins.
Figure 6 shows rivers and streams surveyed for meeting both designated use categories and biological health. Thirty states plus the District of Columbia and the Ohio River Valley Sanitation Commission have numeric data of sufficient quantity to be confident in the determination of biological integrity. The designated use category refers to water quality objectives, or uses, established by states under the Clean Water Act for the protection of fisheries (aquatic life designated uses). Since most states rely on chemical standards to represent conditions that protect aquatic life, the results can be quite different from those obtained by direct biological sampling. These data are for perennial rivers and streams flowing throughout the year and exclude nonperennial stream miles.
Figure 6 compares two surveys on the health of U.S. rivers and perennial streams. (Lakes, reservoirs, and estuaries are not included in this comparison.) The same group of 32 states and territories reported both surveys in the same year. The left chart displays the percentage of rivers and streams that supported, or failed to support their designated use category. The right chart displays the percentage of rivers and streams considered impaired or good based on an index of biological integrity.
Figure 6: Health of Surveyed U.S. Rivers and Streams
(Conflicting Claims Result from Comparing Incomplete Data and Different Methods)

Source: United States Environmental Protection Agency, Summary of State Biological Assessment Programs for Streams & Rivers (Washington, D.C, 1996); United States Environmental Protection Agency National Water Quality Inventory, Report to Congress (Washington, D.C., 1996).
Biological surveys are a direct measure of biological community, or ecosystem health, whereas chemical surveys are at best an indirect measure. Whereas biological integrity is one of the stated objectives of the Clean Water Act, most state water quality standards rely upon chemical tests to determine if water quality is high enough to support designated aquatic life uses such as warm water (e.g., bass) or cold water (e.g., trout) fisheries. Although only a small portion of Americas rivers and streams have been surveyed using a science-based index of biological integrity, available data show that ecosystem health may be a more serious problem than is indicated by use surveys reported under the Clean Water Act.
A second way to examine the ability of the nations waters to support life is to evaluate the number of aquatic species threatened with extinction. The Nature Conservancy (TNC) in cooperation with the Natural Heritage Network has compiled an extensive report on the state of U.S. plants and animals categorized by species group. In describing the purpose of the report, TNC states, "A national debate is now under way about the manner in which we as a society should protect our endangered living resources. All sides agree, however, that an essential ingredient in addressing this issue is reliable scientific information." The leading conclusion from the report is that animals that depend on freshwater habitats (mussels, crayfish, fishes, and amphibians) are in the worst condition overall. The shaded portions in Figure 7 shows that approximately half of freshwater aquatic species groups are extinct, imperiled, or vulnerable to extinction. (Though the reasons are unclear, amphibians, a group that inhabits both freshwater and terrestrial habitats, have 40 percent of species threatened with extinction.)
Why should we care about the possible loss of freshwater species when so many of them are seldom seen? In addition to their value as a genetic resource, their role in the food chain, and their aesthetic value, many of the aquatic organisms play an important role in keeping waterways healthy for human use. Freshwater mussels, one of the least noticed and most threatened species groups, are mollusks that live on the bottom and feed by filtering minute organisms from the surrounding water. Mussels remove suspended particles that bacteria attach to and keep the water clear. Mussels are vulnerable to extinction because they are long lived (some species up to 50 years or more), and susceptible to suffocation by sediment and poisoning by chemicals at relatively low concentrations.
Figure 7: Threatened United States Species Groups
(Classified by the Nature Conservancy as Vulnerable, Imperiled, or Extinct (1997))

Source: Bruce A. Stein and Stephanie R. Flack, 1997 Species Report Card: The State of U.S. Plants and Animals (Arlington, Virginia: The Nature Conservancy, 1997).
In recognition of the value of mollusks in cleaning up polluted coastal waters, Jacksonville, North Carolina announced a plan to clean up Wilson Bay, contaminated by the discharge of treated sewage effluent, by restocking it with more than a million clams, oysters, and mussels. The towns spokesperson noted that a single oyster could filter 50 gallons of water in a day. The plan also includes a proposal to restock depleted populations of sturgeon, which formerly supported a commercial fishery. The goal of the project is to "kick start" the natural processes that once cleansed the now-sullied waters.
C. Urbanization Causes Increasing Impacts
Urbanization can damage water quality out of proportion to the actual rate of development because impervious surface area in many regions now reaches or exceeds the biological threshold of 10 percent at which runoff begins to exceed natural "processing" capacity. A growing body of scientific evidence indicates a direct link between impervious cover and stream health. Thus, impervious cover in a watershed is a good indicator of the overall health of streams that feed rivers and lakes. Where impervious cover exceeds 5 percent, stream health begins to decline in some regions. As Figure 8 shows, with more than 10 percent impervious cover, stream health may be biologically impaired. At 25 percent cover, streams can be non-supporting. Nutrient loading and other types of pollution also increase in proportion to the impervious surface area in a watershed.
Figure 8: Impervious Cover vs. Stream Health

Source: Adapted from Deb Caraco, Rich Claytor, et al., Rapid Watershed Planning Handbook: A Comprehensive Guide for Managing Urbanizing Watersheds (Ellicott City Maryland: Center for Watershed Protection, October 1998).
In Figure 8, impervious cover in a watershed can be used to project the current and future quality of streams. Evidence suggests that larger bodies of water such as lakes, reservoirs, and estuaries are linked to the health of tributary streams. Healthy streams are in equilibrium and contain diverse communities of fish and aquatic insects. Impacted streams have unstable banks, increased levels of fecal bacteria and pollutants, are more prone to flooding, and have lower biodiversity. Nonsupporting streams are conduits for stormwater.
Urban development, which is often accompanied by marked increases in impervious surface, covers about five percent of the land area in the United States. East of the Mississippi, the median amount of developmentthe mid-point when states are ranked by their degree of developmentis almost 10 percent. Figure 9 shows the percentage of land in the United States that is developed by Hydrologic Unit. Hydrologic units are used by the U. S. Geological Survey to catalogue watersheds.
Figure 9: Percentage of U.S. Land Developed, By Watershed
Source: U. S. Department of Agriculture web site: www.nhq.nrcs.usda.gov/cgi-bin/kmusser/mapgif.pl? mapid=5089
But regional developmental densities are only part of the story. As Figure 10 shows, the type of development is also important. At the low end of the scale, residential development on estate lots covers 12 to 20 percent of the land with impervious surfaces. At the high end of the scale, shopping-center development results in over 90 percent imperviousness. At all levels of development, most of the impervious cover is in roads and parking lots.
Figure 10: Impervious Cover as a Function of Contemporary Land Use

Source: Adapted from Chester L. Arnold, Jr. and C. James Gibbons, "Impervious Surface Coverage: the Emergence of a Key Environmental Indicator," Journal of the American Planning Association, vol. 62, no. 2 (Spring, 1996), pp. 243-258.
Approximately 40 times more fresh water is stored in aquifers than is visible on the surface as streams, rivers, and lakes
As Figure 11 shows, a suburban subdivision and associated roads can dominate the landscape, leaving little room for natural ecosystems that are part of the hydrologic cycle.
Although no nationwide measurement of total imperviousness is available, its rate of increase warrants attention. Three trends underlie the increase in impervious surface area:
1. The U.S. population continues to grow at a rate of 20 million people per decade, a rate illustrated graphically in Figure 12. The increased population has been accommodated in housing with impervious rooftops. Assuming that housing has increased in proportion to the population since the turn of the century, this accounts for a 250 percent increase.
2. People have moved to cities where much of the surface area is paved, and concentrated runoff becomes a problem. As Figure 13 shows, the population was 40 percent urban at the start of the 20th century, increasing to 75 percent by the close of the century. In the South, where urbanization lagged behind the rest of the United States, the trend is even more striking.
3. Meanwhile, as Figure 14 illustrates, surfaced road-miles have increased 2,300 percent since 1900. The total increase in impervious surface in the 20th century is probably much greater, because many roads built after World War II are multilane roads, and parking lots have expanded to accommodate rapid growth in vehicular traffic.
Figure 11: A Suburban Subdivision

Source: Photo by Author
Figure 12: Population of the United States, 1900 to 1990

Source: U.S. Bureau of the Census
Figure 13: Urban Population for Unites States and South, 1900 to 1990

Source: U.S. Bureau of the Census
Figure 14: Surfaced Road Miles An Indicator of Imperviousness

Source: Compiled with U.S. Department of Commerce and U.S. Department of Transportation Data
Notes:
The natural hydrologic system has evolved over billions of years to recycle water efficiently. In undeveloped circumstances, vegetated watersheds store and filter precipitation underground before it is gradually released to the surface through springs and seeps that feed streams. Approximately 40 times more fresh water is stored in aquifers than is visible on the surface as streams, rivers, and lakes. During periods of drought, water released from aquifers maintains the flow of streams that feeds rivers and lakes. But as Figure 15 illustrates, impervious surfaces and drainage networks that shunt runoff directly from road surfaces to streams inhibit the function of the natural hydrological cycle.
Figure 15: Water Quality Impacts of a Road with Curb and Culvert Drainage

Source: Illustration by Author
In Figure 15, roads seal the soil with an impermeable layer of pavement that blocks the recharge of groundwater. During periods of drought, stream flow is diminished, particularly in headwater streams. Rain flows quickly over pavement, flushing accumulated litter and pollution into storm drains that discharge directly into creeks and rivers. The increased volume of stormwater runoff, even after average rain showers, erodes and enlarges stream channels, causing siltation and destruction of adjacent habitat. Fortifying stream banks with rock and concrete can slow erosion at a particular site, but make the problem worse downstream.
During the middle of the 20th century, the increasing density of roads and resulting problems with flooding led engineers to experiment with various approaches to dealing with increased stormwater runoff. Several approaches address these problems, depending on local conditions. However, the enclosed storm-drainage system that conveys surface runoff in underground culverts gained dominance, slowing further experimenta-tion for decades. Yet infrastructure managers discovered that speeding runoff from roads into creeks often caused flooding downstream. In an effort to reduce flooding, municipalities began requiring in the 1970s that developers install detention basins to hold back peak flow from major storms. Where the basin discharges through its outlet, the peak flow is reduced, but the downstream effect of detention depends upon how the basins discharge combines with the flow of other tributaries. In some watersheds, detention delays outflow from developed sites so that it overlaps onto the peak flow in the main stem, contributing to a higher combined flow. This problem with peak-flow detention was not foreseen, because the design standards were never tested for performance on a watershed basis, nor were the standards developed to protect streams or reduce pollution.
The U.S. Geological Survey conducted a landmark study on the effects of urbanization on stream channels in suburban Washington, D.C. beginning in the early 1950s. It showed that a surge of sediment enters streams when land is opened for construction. Less recognized is the long-term effect of increased runoff from paved roads, rooftops, and parking lots. The increase in impermeable area results in an increased volume of runoff, which is rapidly conveyed by storm drains into streams. The development-induced surge of runoff from each storm erodes stream channels, draining the area, gradually enlarging the channels, and depositing sediment downstream.
Over a period of 20 years the effect is dramatic. At the 25 to 30 percent impervious cover typical of many developed areas, stream channels experience two to five times stream channel enlargement. In addition to these effects of impervious surfaces, drainage networks dispose of stormwater as a waste product. Most of the pollutants that settle on the surface of roads wash off in a concentrated surge with the first flush of rainfall. With scouring, erosion, and pollution following every rain event, stream channels become biologically non-supporting extensions of the storm sewer system, requiring intensive treatment of water withdrawals for miles downstream. Since development is often concentrated along stream corridors, channel enlargement can result in extensive property damage. Cities face high costs as sanitary sewers and storm sewers are undermined by and leak into streams and rivers. Figure 16 graphically illustrates the destructive potential of development-induced stream channel enlargement.
The problem is much more severe in older cities where sewer lines leak into storm drainage systems and streams. An indication of the extent of this problem is the growth of an industry that contracts with municipalities to line the interior of leaking sewer pipes. According to the president of one such company, Evanco Underground Services, "If a sewer line is over 25 years old, it is likely to be leaking."
In the past, cities dealt with problems of bank erosion and channel enlargement by burying headwater streams in underground culverts and constraining larger tributaries in concrete or stone-lined channels. Some urban areas continue to bury and channelize streams despite widespread recognition that the practice worsens flooding and exports polluted water to communities downstream.
Figure 16: Destructive Potential of Development-Induced Stream Channel Enlargement

Source: Photo by Author
Pollution in urban streams is a very real problem. Point-source, or end-of-pipe discharges require a permit, but many illicit discharges from small pipes remain undetected. Surveys conducted through stream walks and storm sewer inspections can frequently uncover these illicit discharges and get them stopped through a program of enforcement. Numerous small or diffuse discharges are termed non-point pollution. Sources include particulate fallout from air pollution; fertilizers and pesticides applied to lawns; oil, antifreeze, and brake dust from vehicular traffic; pet feces on sidewalks and roadsides; and detergents and other chemicals from commercial activities. All of these substances are washed into streams by stormwater runoff. Chemical spills from industrial and commercial vehicle accidents can also discharge large quantities of pollution directly into storm drains that empty into streams. Effective stormwater management includes spill prevention and source-reduction programs that encourage proper disposal or recycling of potential pollutants.
Though pollution remains a problem, it is important to look at the underlying conditions leading to urban water-quality impairment. Many of the point-source discharges from industrial sites have been greatly reduced through market-driven technological changes and requirements of the federal Clean Water Act. What remains are the far more numerous and harder-to-control nonpoint-sources of pollution. The greatest source of urban nonpoint pollution is runoff from impervious surfaces. Typically, three-fourths of the pollution loading in urban streams is from stormwater runoff. According to the Nationwide Urban Runoff study conducted by the EPA, the decline in urban stream health is best explained by a combination of altered hydrology and pollutant loading.
In parts of some older cities, sewage and storm drains are combined; causing stormwater mixed with sewage to overflow as aging systems become overburdened. Figure 17 illustrates such a system.
Figure 17: Diagram Showing the Effect of Combined Sewer Overflow on Water Quality

Source: Diagram by Author
In Figure 17, combined sewer systems mix stormwater and untreated sewage in the same system of collection pipes. During dry weather, sewage and small amounts of runoff entering the stormwater system (from car washing, for example) flow to the wastewater treatment plant. However, during wet weather, the capacity of the system is exceeded, and stormwater mixed with sewage overflows directly into creeks at points called Combined Sewer Overflows (CSOs). Combined sewers, leaking sewer lines, and illicit connections add to the problem of stormwater runoff.
The organisms that inhabit a healthy stream can tolerate a certain amount of stress while the stream purifies itself of pollutants. The ability of streams to absorb low levels of pollution and recover is known as assimilative capacity. Certain organisms that colonize streams can actually break down pollutants into less harmful substances, in effect making the streams natural water-pollution treatment areas. This concept is used as a legal rationale for issuing effluent-discharge permits. Some discharge is permitted as long as enough miles of free-flowing stream or river exist below discharge points for water quality to return to acceptable levels. However, when streams are stressed beyond their ability to adapt, either through excessive pollution loading, channelization, loss of riparian habitat, or changes in flow, assimilative capacity decreases, and the stream enters a spiral of decline.
D. The Economic Importance of the Hydrologic Cycle Is Ignored
A root cause of current water problems is land-use development patterns and water-management systems that disrupt the Earths natural hydrological cycle. Solar energy powers this vast cycle that recharges aquifers, streams, and lakes.
In Figure 18, solar energy powers the hydrologic cycle that recharges aquifers, streams, and lakes. The cycle operates through the interaction of physical and biological processes. Despite the abundance of water on Earth, very little is fresh. Water is distributed approximately as follows: oceans, 97.1 percent; ice, 2.25 percent; groundwater 0.6 percent; lakes (fresh and brackish) 0.015 percent; atmosphere, 0.001 percent; rivers, 0.0001 percent. The largest supply of fresh water is in the form of subsurface aquifers recharged through the process of infiltration of rainwater.
But as Figure 19 illustrates, urban development that results in substantial impervious surface can disrupt the cycle by replacing complex ecosystems adapted to the efficient recycling of water with impervious rooftops and pavement. Impervious surfaces block the recharge of groundwater, causing rainfall to rapidly run off into streams. Keeping rain (stormwater) on the surface instead of letting it soak into the ground depletes groundwater supplies upon which many communities depend for drinking water. When groundwater recharge is blocked, water tables drop, contributing to springs and streams going dry in the summer. Impervious surfaces, especially roads, also accumulate pollutants that are washed off in a concentrated surge with the first flush of rainfall. Replacement of natural vegetation with pavement also markedly raises the summer temperature of cities, reducing personal comfort, increasing the use of air conditioning (which increases air pollution), and further damaging the natural system of water recycling.
Pollution in urban streams is a very real problem. Point-source, or end-of-pipe discharges require a permit, but many illicit discharges from small pipes remain undetected.
In Figure 19, urbanization alters all parts of the hydrologic balance. Urban development begins disrupting the hydrologic cycle by replacing complex ecosystems that have evolved to infiltrate precipitation into the ground where it is stored and gradually released, with impervious surfaces that block groundwater recharge and increase runoff. The engineered system of surface storage, created by damming streams and rivers, is losing capacity as sediment eroded by increased runoff fills reservoirs, shortening their useful life.
The rapid runoff of stormwater into urban streams erodes their channels, causing the streams to deepen and widen. Stream-channel enlargement damages urban infrastructure by undermining bridges and sewer lines, collapsing structures, and eroding property. Increased runoff from impervious surfaces also results in an increase in damaging floods. Sediment eroded during the construction phase of new development, and later from enlarging stream channels, smothers aquatic life and accumulates downstream in water supply and flood-control reservoirs. The total cost of disruption to the hydrological cycle and resulting damage to urban infrastructure has not been calculated, but is likely to be very large.
Figure 18: Earths Hydrologic Cycle

Source: Illustration by Author
Figure 19: Hydrologic Cycle Altered by Urban Development

Source: Illustrated by Author
Part 2
Three main approaches have emerged for addressing the negative impacts of development dominated by impervious land surfaces:
While the latter approach seems likely to produce the greatest level of surface-water protection, watershed management can in many cases benefit from long-term funding linked to infrastructure usage and user impacts on watershed health.
One way to balance the need for a dynamic economy with the need to protect essential ecosystem "services" is to adopt user fees that reflect the costs of addressing stormwater runoff and pollution impacts. Urban development is often concentrated around rivers, lakes, wetlands, and coastal estuariesareas that contribute most to the functioning of the hydrologic cycle. Fees that reflect such costs could discourage development of high-impact areas and could encourage development patterns that make better use of natural hydrological cycles.
Unlike current funding of fragmented water utilities through tax revenue, user fees can create incentives to minimize harmful impacts and maintain development within the resource capacity of a given watershed. User fees create a positive feedback loop between costs and benefits. Compared to tax-based regulatory management, user-fee funding is more likely to be economically efficient and respond to the dynamic nature of both real estate markets and ecosystems. Moreover, user fee-funded utilities are less prone to political manipulation and better able to raise funds needed for long-term planning and maintenance.
New federal requirements for stormwater permits affecting smaller cities and court-mandated enforcement of the Clean Water Act on a watershed basis are spurring many municipalities to consider the user-fee concept for funding improved stormwater management. Over 350 stormwater utilities have been formed nationwide, most within the last decade.
Widespread concern over the consequences of traditional engineering approaches to land development is leading to a search for alternatives. Public debate has focused on the issue of density. In a 1998 Reason Public Policy Institute publication, The Sprawling of America: In Defense of the Dynamic City, Samuel Staley writes: "The debate over sprawl is driven primarily by general concern that low-density residential development threatens farmland and open space, increases public-service costs, encourages people and wealth to leave central cities, and degrades the environment." Proponents of high-density development argue that concentrating development within urban-growth boundaries will leave surrounding open space for farms and protect environmental quality. Dozens of cities and counties have passed urban-growth boundaries to contain development.
When the North American continent was settled, waterways served as the main avenues of commerce. In order to provide equal access and defensible boundaries, dividing lines for states, counties, and municipalities were drawn down the middle of rivers, streams, and lakes. Over time, the practice of dividing surface waters between competing jurisdictions likely encouraged depletion, pollution, and waste.
Another impediment to watershed management is the regulatory overlap that has developed between agencies at all levels of government. At the federal level, water resources are addressed by a multitude of agencies including, among others, the U.S. Army Corps of Engineers, Bureau of Reclamation, Environmental Protection Agency, Federal Energy Regulatory Commission, Natural Resource Conservation Service, and the Fish and Wildlife Service. At the municipal level, water management is generally divided between separate departments for drinking water, roads and drainage, sewers, and parks and recreation. Fragmented management creates a need for interagency cooperation. In various places around the country, however, watershed resource-management initiatives seek to establish cooperative alliances between politically defined resource-management units based on state, county, municipal, tribal borders, or private property.
Watershed-based ecosystem management replaces centralized one-size-fits-all decision making with more decentralized decisionmaking within natural drainage basins. The interdependence of watersheds with headwater tributaries feeding creeks, rivers, lakes, and estuaries makes watersheds the appropriate level of analysis for water resources. After all, political boundaries seldom coincide with watershed boundaries. A user-fee utility approach creates a context in which watershed management and impact costs become an integral part of development decision making.
Market-based approaches can offer a superior alternative to regulatory prescriptions because they help foster private-sector innovation, they create incentives for developers to work with "nature," and they provide revenue streams to fund needed infrastructure. Druid Hills, planned by landscape architect Frederick Law Olmsted, Sr., is instructive because, although it involved local land-use planning, the project was entirely a product of private enterprise. If it were conceived today, the same suburban design could not be built because it conflicts with numerous zoning and stormwater codes imposed by local government. These same code provisions, dictating things like minimum-road widths and housing density, have been widely adopted throughout the nation. The result is that regulations intended to protect homebuyers from intrusive development have often had the unintended consequence of discouraging environmentally friendly designs adapted to local conditions.
A. Market-based Ecosystem Management
Rather than adopting growth boundaries or other regulatory approaches that restrict development of broad areas of private land, a market-based approach to protecting surface waters that integrates economic and ecosystem needs could be implemented based on the following principles:
·Make zoning and stormwater codes more flexible and effective by implementing performance-based measures tied to improvements in ecosystem health and reductions in flood damage. The adoption of flexible codes will represent a significant shift in how government agencies operate and will require the re-education of the review staff at most municipalities in the principles of adaptive management. For such a proposal to be effective it is important that sound use of scientific information infuses performance-based measures. Lacey, Washington passed an ordinance aimed at limiting impervious surfaces by revising building codes, the first such ordinance in the United States.
·Reduce wasteful administrative conflicts through comprehensive water-resource management at the local level by combining water supply, sanitary sewage, stormwater drainage and wildlife protection into an integrated water utility (privately managed or even privately owned).
·Address the issue of landscape fragmentationthe need for a connected network of riparian corridorsby finding private or private-public partnerships to support regional river-basin initiatives.
·Improve service and control costs by contracting with private companies for services that cannot be performed efficiently by government.
Unlike current funding of fragmented water utilities through tax revenue, user fees can create incentives to minimize harmful impacts and maintain development within the resource capacity of a given watershed.
Traditional stormwater management treats stormwater as a waste product of urban development. Responsibility for stormwater management is generally dispersed between various government agencies and departments, fragmenting stormwater management efforts and creating jurisdictional conflicts. Existing programs often suffer from inadequate funding, forcing managers to react to problems such as flooding with short-term, piecemeal solutions. Stormwater systems are rarely built to handle runoff from anticipated future development, often resulting in flooding and a loss of water quality to receiving waters.
Citizen demand for an effective response to a crisis is credited for the formation of the stormwater utility concept. In Louisville, Kentucky the impetus for more effective stormwater management was a flood that inundated 60 percent of the city. In an effort to avoid a repeat of the disaster, a countywide drainage utility was established to consolidate local programs in 1986. In Tulsa, Oklahoma the precipitating event was a powerful thunderstorm that dumped 15 inches of rain on the city in 1984, killing 14 residents and destroying 80 city vehicles and pieces of equipment. Today, growing citizen demand for effective action dealing with environmental problems related to urban infrastructure is prompting many more communities to consider the stormwater utility concept illustrated in Figure 20.
Figure 20: Virtuous Cycle of the Stormwater Utility

Source: Illustration by Author
Some officials may initially be uncomfortable with the stormwater utility concept because it relies on a feedback mechanism rather than a linear planning process. However, the complex, changing nature of environmental systems makes them ill suited to traditional management, leading to failure and frustration. Many experts, including the EPA, are recommending adaptive management that is responsive to the dynamic nature of both markets and ecosystems. Adaptive management is a process for improving resource management incrementally as managers and scientists learn from new experience and scientific findings.
Formation of a stormwater utility begins with the development of a strategy for improving service and proceeds with programs to finance the basic mission and collect data on all aspects of the system, including impacts. Development of a utility generally requires three parallel tracks of activity. These include: 1) a program track, 2) a finance track, and 3) a database track. Development of a user-fee rate structure is an iterative process. Desired improvements defined under the program track translate into a rate structure through the finance track, which in turn requires information generated through the database track. A feedback loop between the tracks indicates when the desired rate structure is too expensive to develop or maintain or the data are insufficient to support it. Affordable consulting services are available for setting up and managing a stormwater utility.
A key element of the stormwater utility concept is the development of a database that enables managers to overlay complex features of the built and natural environments. Geographic Information Systems (GIS), store layers of data on topography, vegetation, hydrology, geology, property parcels, roads, sewer lines, and drainage systems, and register the data on a common cartographic coordinate system.
Figure 21: Geographic Information Systems

Source: Adapted by Author from an illustration by Edward O. Wilson in The Diversity of Life (Boston, Mass: Harvard University Press, 1992).
In Figure 21, Geographic Information Systems combine information on human, physical, and biological environments by joining layered electronic data sets. GIS offers a tool for managing the landscape in a way that protects both property rights and ecosystems.
For billing purposes, managers can use the system to calculate impervious surface area from aerial photographs overlaid with individual property parcels. They can also tag stream-monitoring results obtained in the field to specific map locations or calculate the potential for flooding created by a proposed development site. Technology now makes it much easier to work with nature. A stormwater utility can fund the application of GIS technology at the local level.
The user-fee-funded stormwater utility provides functional recognition of stormwater as a resource. The utility concept focuses management in a single organization, which can be public, private, or some combination thereof. Creation of a utility allows for dedicated infrastructure and management funding, with fees tied to impacts. The approach enables development of comprehensive preventative and enhancement programs.
Stormwater runoff in already-developed communities has been successfully treated by retrofitting ponds into low places in the terrain. One such project, on Weaton Branch in suburban Maryland north of Washington, D.C., has improved the health of a stream impacted by run off from a shopping mall. There, a group of ponds was designed to intercept runoff before entering a near-by stream.
Figure 22: Stormwater Pond on Weaton Branch

Source: Photo by Author
This stormwater pond on Weaton Branch, north of Washington D.C., controls runoff from a highly impervious area surrounding a shopping mall. The pond is designed to deepen following a rainfall, then slowly release the detained water over a two-day period. Stormwater facilities built to work with nature can become neighborhood amenities.
In a typical pond, the outfall structure is designed so that it holds a pool of permanent water. During rainstorms, additional stormwater accumulates in the pond. The outfall structure then gradually releases the stored water into a receiving stream. This design combines two techniques, retention of a permanent pool, with extended detention of stormflow. By supporting a permanent, balanced ecosystem, insect pests are controlled while at the same time treating the first flush of runoff. Other design features that improve the effectiveness of stormwater ponds include forebays that capture sediment and trash, fringing wetlands, and a bordering canopy of trees.
Many municipalities currently require developers to install peak-flow detention basins. In some areas of the country these older facilities with limited effectiveness can be converted for extended detention of stormwater. Extended detention impounds stormwater, then gradually releases it over a period of one to three days. When combined with tree planting and stream-bank stabilization, this approach has the potential to improve water quality in existing communities that have limited space for more natural stormwater controls.
The user-fee-funded stormwater utility provides functional recognition of stormwater as a resource.
Structural stormwater controls that mimic natural systems are only part of the response to restoring streams and healthy communities. One of the most important steps is urban reforestation. However, far too many cities consider a token planting of trees within small holes cut into the pavement to be urban reforestation. In order to mature, trees generally need planting strips between paved areas eight-feet wide. The approach taken by urban planner Frederick Law Olmsted in Druid Hills, where homes and roads were constructed without knocking the forest down, offers an even more desirable alternative. A forest is an evolved ecosystem including permeable topsoil that functions as part of the hydrologic cycle. Restoring an urban forest means planting a variety of tree species that support wildlife, such as insectivorous birds. Within the aquatic environment, roots stabilize stream banks, while leaves and organic matter shed by trees adjacent to the stream form an integral part of the aquatic food chain. In addition to numerous other benefits, such as lowering air-conditioning costs and attenuating urban noise, restoring a canopy of trees reduces stormwater runoff by intercepting up to a quarter-inch of rainfall before it hits the pavement.
One of the success stories of pollution control at the federal level is a reduction in the use of toxic heavy metals. The Nationwide Urban Runoff Program (NURP), a comprehensive set of studies conducted by the EPA on the causes of urban water pollution, identified heavy metals as the priority pollutants of greatest concern. Heavy metals washed into stormwater eventually enter water supplies of communities downstream. Heavy metals are a particular hazard because they persist in the environment for a long time and accumulate in greater concentrations in shellfish that feed by filtering particles from the water and in predators, such as fish, near the top of the food chain.
The heavy metal of greatest concern in the 1983 Nationwide Urban Runoff Studies was lead. Lead accumulates on pavement as fallout from air pollution and leaches from painted surfaces. Rainfall flushes accumulated lead particles into stormwater entering aquatic systems. By 1988, regulation by the EPA had almost eliminated lead from paint and gasoline. Subsequently, the concentration of lead in the environment has dropped by 89 percent. Use of lead was reduced after medical research established severe developmental consequences, particularly mental retardation in small children.
Although NURP focused on chemical contamination as a cause of poor water quality, a major finding of the study was that loss of habitat from the physical impact of stormwater-induced erosion and sedimentation often had a more deleterious effect on water quality than chemical contamination.
Subsequent studies linked the amount of impervious surface area in a watershed to altered hydrology and the cascade of secondary effects including stream bank erosion, sedimentation, and pollutant transport. Stormwater utilities are well suited to addressing the major cause of water quality impairment at the local watershed level.
Part 3
In considering development of water utilities, several environmental and logistical challenges warrant attention. These include challenges of addressing interstate and interregional issues, the importance of moving toward a systemwide approach, and the distinctive aspects of stormwater relative to sewage and other "wastes."
To be fully effective, watershed protection should begin in the headwaters and progress downstream. Protecting water at its source is often preferable to removing pollution once it enters a water supply. In practice, this requires local, decentralized decisionmaking. The EPA has estimated that over 3.5 million miles of streams and rivers exist in the United States. Given the enormity and complexity of the task, keeping Americas waters healthy will require a local effort.
Contrary to popular perception, headwaters of a river are not simply in some distant place in the mountains where a particular spring bubbles up from the ground. This view derives in part from famous stories of explorers searching for the source of great rivers in unknown places. In reality, as Figure 23 illustrates, tributary streams typically originate all along the divide of high ground that rims a watershed and separates it from other adjacent watersheds.
The example used is for the Apalachicola-Chattahoochee-Flint (ACF) River Basin, site of a major legal dispute that will be discussed shortly in a case study of Metropolitan Atlanta. The ACF System supplies water to, and receives waste from, large areas of Georgia, Alabama, and Florida. Although the system first begins flowing in the mountains of North Georgia, all of the tributary streams contribute to the systems flow, including the highly impervious watersheds draining urbanized Atlanta.
In Figure 23, watersheds nest one inside another as illustrated by this set of watersheds from a case study of Atlanta. Large watersheds drained by rivers or river systems are called basins. Tributaries within a larger watershed are usually called subwatersheds. Although the size of watersheds roughly corresponds to that of political jurisdictions from the state down to the county and municipal level, the boundaries rarely coincide, greatly complicating management.
Figure 23: Watershed Management Units vs. Political Jurisdictions

Source: Illustration by Author
A river system has a branching pattern much like a tree; there is usually one main trunk with dozens of branches and thousands of twigs. Each of the twigs is equivalent to a small headwater stream with its own small sub-watershed nested inside a branch tributary watershed, which is nested in turn inside the main river basin. In terms of watershed management, this means that protecting water at its source will necessarily involve many individuals and communities protecting small streams throughout the watershed. Watershed protection beginning in the headwaters not only improves water quality for others downstream, it also makes the communities themselves better places to live.
Ideally, river basin management should be combined with management at the local watershed level (as discussed later, regarding Floridas Water Management Districts). Headwater streams are emphasized here because the predominant technocratic approach to water management relies on the construction of large public works projects to store, filter, and regulate the flow of water downstream when it could be more cost effective and ecologically sound to first protect water at its source. Previous generations could generally count on streams to purify themselves as they flowed through the countryside. With high levels of imperviousness now covering many regions of the United States, polluted streams never have a chance to recover. User-fee-funded stormwater utilities provide a way to fund watershed improvements that offset runoff and pollution accompanying population growth.
B. Disentangling Stormwater Management from Sewage Treatment
Stormwater is fundamentally different than sewage. Treating sewage in treatment plants is often effective and efficient. Except for densely developed urban centers and certain toxic sites, treating stormwater in treatment plants is inefficient and hard to justify. Sewage is a concentrated effluent that flows constantly from collection pipes. Sewage-treatment plants use cultures of bacteria that digest human waste in giant tanks. To a great extent, sewage treatment is a biological process concentrated in a small space using pumps and aeration to keep bacteria working at a high level of efficiency.
By contrast, stormwater runoff is very dilute, but there is much more of it. Unlike sewage, the volume, composition, and temperature of stormwater change radically over time. Since stormwater flow varies from almost none during dry weather to a sudden flood following a rainstorm, building enough treatment-plant capacity to remove the contamination contained in even the first flush of runoff becomes prohibitively expensive. An alternative is to restore the hydrologic cycle that recycles water by controlling runoff from impervious surfaces and reducing pollution at its source. This means either reducing the amount of impervious surface area below 10 percent (impractical in most urban areas) or treating runoff by infiltrating it in the ground and detaining it in ponds and wetlands for an extended period of time. This approach of designing drainage systems to work with nature is often termed bioengineering. Pollution reduction and spill prevention programs can be combined with bioengineering to reduce polluting materials at the source (source reduction). By protecting the natural assimilative capacity of groundwater recharge zones, streams, rivers, lakes, and estuaries, the small amount of pollution that does escape can be broken down by microorganisms in the soil or in the aquatic environment.
C. Obtaining Interstate Cooperation
One of the limitations of any watershed management effort is that most river basins flow between states. Consider North Florida, which shares river basins with the neighboring states of Georgia and Alabama. A river system flowing between the states has great importance to the regional economy. Known as the Apalachicola-Chattahoochee-Flint (ACF) River Basin, the system originates in North Georgia, where it supplies water to, and is greatly influenced by runoff from, Metropolitan Atlanta. As Figure 24 illustrates, after passing through Atlanta, the Chattahoochee (the longest river in the system) forms the border between Georgia and Alabama. The river system is vitally important to the economy of North Florida because, following the decline in the health of Chesapeake Bay, it feeds the most-productive seafood estuary on the entire East Coast. Interspersed throughout the ACF System are 15 major dams that back up the rivers into a series of reservoirs. Flows within the system are managed through water releases controlled by the United States Army Corps of Engineers.
The protracted legal battle known regionally as the "water wars" began over Atlantas demand for additional water from rivers shared with Alabama and Florida. The battle began in the drought years of the 1980s when Atlanta faced serious water shortages, leading to conflicts over the allocation of limited supplies from the Chattahoochee and other rivers. The conflicts came to a head in 1990 when the State of Alabama sued the Army Corps of Engineers in federal court to block the allocation of additional water to municipalities within the Metro Atlanta region. When Florida joined the dispute, the press dubbed it the "tri-state water wars." The suit was prompted by a plan pushed by the Atlanta Regional Commission to double Metropolitan Atlantas permitted withdrawals by the year 2010. Atlanta leaders believed the water was needed to meet residential and industrial growth. In 1992, the disputing parties reached an agreement to stay the suit pending an ongoing $13.5 million comprehensive study of water demands, resources, and management strategy. Currently, the parties are continuing to negotiate in order to avoid having the case go to the U.S. Supreme Court. The "tri-state water war" is being fought over the quantity of water allocated from a finite natural resource. According to U.S. Rep. Bob Barr (R-Ga.), "It would be one of the most complex cases ever before the court. It could be tied up in the court for years, and the court could put a moratorium on new uses of water, the economic loss to Georgia could be in the billions of dollars." Additional, separate disputes underway involve issues affecting water quality. amenable
Figure 24: Water Management in the ACF Drainage Basin

Source: Illustration by Author, Data from U.S. Army Corps of Engineers 1996 (http://www.nacc.usgcrp.gov/sectors/water/draft-report/figure3.html#Figure3), Photo courtesy of United States Geologic Survey, Atlanta Office.
The water wars and other lawsuits reveal the difficulties of resolving resource conflicts through adversarial means. Eugene Odum, often referred to as the father of ecosystem ecology, has pointed out that when resources are abundant, competition between species is a winning strategy. However, as ecosystems mature and resources become limited, cooperation provides species with an adaptive advantage. Use of market institutions also provides a means of avoiding conflict by effectively allocating and managing scarce resources.
D. Fostering Community-based Watershed Protection
In other parts of the nation, local communities are spearheading watershed protection efforts. People are more likely to take action and make sacrifices to protect a local stream or lake than they are to embrace an abstract idea such as environmental protection. Hydrologic and ecological interactions over a large scale suggest that watershed programs should proceed at the scale of river basins. However, watershed programs on a broad, regional scale face significant political and institutional barriers. The larger the watershed, the greater the challenges in coordinating multiple individuals and municipal, county, state, and federal agencies. Large-scale programs risk opposition from local government officials who fear loss of control over land use, economic, or environmental policies. In contrast, local politicians who ignore community-based watershed-protection efforts risk being replaced in the next election. Watershed programs initiated out of Washington, D.C. are almost certain to arouse local suspicions; locally initiated programs are less threatening, and they enable decision makers to tap into the "local knowledge" of those that own or use the relevant water and land resources.
The hydrologic cycle is a matrix of interlinked components consisting of headwater catchments nested within larger-scale watersheds and river basins connected by a continuous stream of flowing water. The cycle, a complex, adaptive system, operates without central control, not unlike the distributed system of computers that form the Internet and move streams of information. Like the Internet, the emergence of community-based watershed initiatives springing up across the nation represents a new phenomenon based on citizen response to local needs and conditions. Given the opportunity, local watershed groups may organize over time into larger-scale networks more closely aligned with regional resource boundaries.
Community-based watershed initiatives are already creating demonstration projects for effective watershed management. Unlike narrowly focused regulatory management, which levies sanctions for noncompliance, watershed initiatives emphasize flexibility, problem solving, and a balancing of competing interests and goals. To date, community groups have been funded mainly by a combination of short-term government and private grants. Where watershed boundaries closely approximate political boundaries, local governments have also participated in watershed initiatives funded by a combination of grants and tax revenue. Water withdrawal and discharge permit fees could provide funding for state planning and enforcement at the river basin level. Unlike taxes, water use fees can be made proportional to management costs and impacts. To achieve its potential, long-term funding for watershed management should establish positive feedback loops that link user impacts to watershed health. The next section describes such a program for dedicated, long-term funding of watershed management that grew out of a community-based effort and is now being expanded to encompass comprehensive water-resource management at the countywide level.
Part 4
New Market Approaches in Action
A. Bellevue, Washington: User Fees Tied to Impervious Surface
Bellevue, Washington has adopted the type of feedback-loop approach described above. Concerned that land development was destroying the very qualities that attracted residents to the city, some citizens worked with their local government to study the problem. They identified stormwater runoff from impervious surfaces and loss of ecosystem function as key problems. Because the citys political boundary nearly coincided with the natural watersheds, Bellevue was able to address the problems locally. In 1974, the city established a cost-based, user-fee-funded stormwater utility. The utility applied fees that charged property owners based on the amount of impervious surface. An advanced Geographic Information System (GIS) is now utilized for ecosystem management that overlays elements of the built environment (such as property parcels) with elements of the natural environment (such as wetlands). Despite one of the highest fee structures in the nation, property values and approval ratings for the utility remain high because the fees are linked to specific watershed management and impact-abatement needs. Many consider Bellevue to be an urban oasis where tree-shaded streams still support trout, flood damage is minimal, and surface streets remain relatively uncongested. Bellevues stormwater utility has been elevated to department status and is now cooperating with surrounding King County for more comprehensive water-resource management that will combine water supply, sanitary sewage, stormwater drainage, and wildlife protection.
Bellevue is a suburb of Seattle located between the shores of Lake Washington and Lake Sammamish. In addition to rediscovering the linkage between watershed protection and a healthy community, the city developed an institutional framework for maintaining the integrity of the system over time.
Bellevue enacted one of the first user-fee-funded stormwater utilities in the nation. Unlike most stormwater utilities formed to deal with flooding, Bellevues program was the result of citizen concern over the impacts of emerging land-development patterns. The city council appointed several of the citizens to a committee to examine the problem. Initially, the committee examined erosion and sedimentation resulting from development practices that damaged stream channels used by spawning salmon.
Recognizing that stormwater was causing the erosion, the committee recommended that the city establish both an erosion-control ordinance and a stormwater-management program. At the same time, the state of Washington passed an amendment to existing legislation permitting stormwater management to be funded using a system of c