To show the latter result, consider two wells j and I with dj < dt. Then it must be that =i<f)(dj,T — s,fly) > £|=i0(dj,7’ — s,fl() for all / and T > i (e.g. consider the Glover-Balmer equation). However, the gains from optimal regulation relative to other, simpler kinds of regulation may not be quantitatively important and depend both on the heterogeneity of producers and their production functions, and on the spatial complexity of the hydrologic system. For any given application, it is important to understand whether the gains from the introduction of a complex regulatory or incentive-based system for groundwater management are worthwhile, in comparison to alternate regulations with lower informational requirements and higher stakeholder acceptability.