This analysis of pollutant trading opportunities and review of existing markets was undertaken to encourage discussion by water managers in Chile. The paper gives a brief overview of each type of economic incentive related to water including taxes, water pricing, service charges, subsidies, liabilities for damages and tradable rights and permits. The paper concludes with a recognition of the need for strong legal frameworks that are linked to the practical realities of the country attempting to create a trading system to make the trading system a potential success.
