If the abstraction charge reflects the opportunity cost of water in regions where water is abundant (i.e. the opportunity cost will be low), the investment is likely to materialise and could be located anywhere, including in water scarce regions, generating a cost that is not covered by the charge. If the abstraction charge reflects the opportunity cost of water-scarce regions, water availability will be protected but water abundant regions will lose the opportunity of a new activity. This measure would be an incentive for local authorities to disclose information on water use and water expenditures. It would also be an incentive to revise water entitlements so that over time they reflect actual use, thereby generating more flexibility to reallocate available water, possibly to new comers, in basins where water was over-allocated but not over-used.