Salinization of soils is a major impediment to their optimal utilization in many arid and semi-arid regions throughout the world. In several large irrigation schemes, salinity-induced land degradation has increased steadily over the last few decades with concurrent reductions in agricultural productivity and sustainability. Currently, saline soils occur within at least 100 countries. These soils need explicit approaches in their amelioration since soil salinization cannot be reduced by routine irrigation and crop management practices.

The increasing importance of sustainability in natural resource management is drawing increasing attention, worldwide, to the role that policies can play in enhancing the management and allocative efficiency of water. Looking at various examples from the literature, we discuss some best practices that have been applied in a variety of empirical settings, while highlighting some of the pitfalls to avoid. We discuss the role that assigning water rights can play in creating the necessary incentives for market-based mechanisms of re-allocation to work for water management.

The need to increase water productivity is a growing global concern as the World Commission on Water has estimated that demand for water will increase by c. 50% over the next 30 years and approximately half of the world's population will experience conditions of severe water stress by 2025. Three-quarters of African countries are expected to experience unstable water supplies, whereby small decreases in rainfall induce much larger reductions in streamflow.