A distinguishing feature of the water quality problem is that environmental damages— that is, the costs to society of pollution—are highly dependent on the location of pollution sources in the hydrological, social, and economic landscape. First, the demand for water quality varies from location to location. Some waterbodies are envisioned as pristine, where recreation and species support is the overriding concern. Other waterbodies, such as those in urban areas where industrial effluent and development-related runoff are practical facts of life, serve a more complex set of objectives. Second, a source’s location determines the way in which pollution.
