In 2014, the government selected seven provinces to host pilot markets for trade in water rights. The existence of the “governor’s grain bag policy”, whereby each provincial governor must ensure grain demand and supply is balanced within their province, may constrain the ability of provinces to produce the most appropriate crops given local water endowments. For example, under this policy, relatively dry provinces still need to produce water-intensive crops such as rice. In future, grain quotas at the provincial level should evolve to better reflect water availability. Other types of infrastructure such as transport, electricity and IT networks will also be important to enable agricultural producers to lift productivity and to connect those wishing to pursue off-farm work or education with desirable locations.