Water is complicated. Historically, it has been mismanaged, undervalued, and under transacted––innovation, has been ossified. Even in the 21st century there remains significant issues with accuracy, transparency, fragmentation, and stagnation in terms of water resources, markets, and uses.

The water law system, as it is practically administered throughout the United States, has not lent itself favorably towards accuracy and transparency­­­­––both of which are vital for sustainable resource management. Rights of record are often analogue and inaccurate; there is often significant deviation between the actual usage of water and the information recorded in an office of water administration. These inaccuracies compound the threats of major consequences already posed by a growing water scarcity.

The lack of technological innovation within public and private administrative resources systems has stymied the full potential of market activities, led to inaccurate valuations of water assets and usage rights, and perpetuated water’s immense volatility, both as a public resource and market commodity. Lux Water endeavors to change this by harnessing the powers of blockchain.

Named after the revolutionary case upon which water rights in California would be built, Lux Water is a revolutionary, market-based approach to water resource management through the utilization of distributed ledger technologies. The company seeks to initiate a digital transformation within traditionally analogue water markets by providing wholly digitized platforms and online trading engines that run on blockchain application systems. These applications will provide water resource systems the ability to manage water resources more effectively by translating those resources into digital, asset-backed tokens that can be used, regulated, and transferred on a uniform public platform. The symbiosis of digital markets and blockchain technologies will not only automate transactional processes, but also increase the transparency and reliability of emerging water-markets and data, thereby demystifying existing markets, lowering barriers to market entry, and resulting in better management practices.

Project Leader: Bear Vasquez