Raffensperger, J. F.Milke, M.W.Read, E.G.2010-01-272010-01-272009Raffensperger, J. F., Milke, M.W., Read, E.G. (2009) A Deterministic Smart Market Model for Ground Water. Operations Research, 57(6), pp. 1333-1346.0030-364Xhttp://hdl.handle.net/10092/3416Efficient management of water requires balancing environmental needs, externality considerations, and economic efficiency. Toward that end, this paper presents a deterministic linear program that could be used to operate a smart spot market for groundwater. The market design uses the existing hydrological programs MODFLOW and GWM along with standard linear programming methods. In principle, a market could be set up anywhere that a MODFLOW model is available. The market design has parallels to markets in the electricity and gas sectors, which we discuss. We present a case study with notional bids for Marlborough, New Zealand. Our approach would reduce transaction costs for a water market, reduce users’ risk, and increase the reliability of environmental flows. We discuss a number of cautions and limitations to the model and recommend further work on introducing a stochastic framework to the model.enGames/group decisions: bidding/auctions. Environment. Natural resources: water resourcesJournal ArticleFields of Research::290000 Engineering and Technology::290700 Resources EngineeringFields of Research::340000 Economics::340200 Applied Economicshttps://doi.org/10.1287/opre.1090.0730