WHAT IS A "WATER MARKET?"
Simply put, a water market is a place for transferring ownership interests in water. The place can be a physical building or a cloud-based system. And that ownership interest could be whatever bundle of rights you own for that water.
BUT WHAT IS A "SMART MARKET"?
Smart markets leverage the power of computer optimization to process complex water rights, transfer rules, conveyance, and other constraints, in order to streamline and simplify water transfers. The goals of the smart market are to increase access, participation, transparency, and equity of water transfers in the Yakima Basin to address water scarcity and increase drought resilience among agricultural, municipal, and environmental interests. Whereas the current decentralized transfer process is cumbersome, development of a centralized electronic clearinghouse will decrease transactions costs and increase market participation.
WHAT IS A "WATER RIGHT"?
The following link (picture below) is to the Landowners guide to water rights. This guide spells out what a water right is, what it provides, and what it doesn't. This is especially important for landowners with water rights they want to buy, sell or trade.