The course covers the economics of water resources, with special emphasis on areas such as California where water is a scarce resource. The aim is to teach both about economic tools, how economists go about analyzing key aspects of water policy, and also about the specifics of water in the US West, what has been learned by applying these tools to water issues in the region. The course assumes a knowledge of intermediate microeconomics, and some familiarity with linear regression. The course consists of two lectures plus one section per week. The sections will be used to review the lectures, prepare for the problem sets, and review the answers to the problem sets. There will be six problem sets. In addition, there is a required research paper. There is no midterm exam. The final grade will be based on the final exam (50%) and the paper (50%), with problem sets potentially pushing you up a grade if you are on the margin.