Uhm, not really? Like, I'd describe the system that auctions off frequency spectrum as "market-based", even though the quantity of spectrum sold is fixed. The f

Uhm, not really? Like, I'd describe the system that auctions off frequency spectrum as "market-based", even though the quantity of spectrum sold is fixed. The frequency spectrum auction is a market designed and created by a central planner, sure, but it's still a market. If you wanted to be really clever, you could separate out the environmental concerns as a separate entity and give them a budget to buy and leave unused the water rights that best support their mission. That seems a bit weird to me, though - I'd rather just figure out how much water we can distribute safely, and then auction off the right to receive that distribution at fair market prices.