Alberta will kick off negotiations with major water licence holders to strike water-sharing agreements for the Red Deer River, Bow River and Old Man River basins Thursday as concern over looming water shortages grows.

The use of water is restricted in Alberta through the issuing of “water licences” by the provincial government. One hundred per cent of Alberta’s water is already allocated.

If one wants to purchase a licence, they must purchase one from an existing licence holder. This system — referred to as “first in time, first in right” — has been in place since 1894. It means, in essence, that the biggest water licence holders must voluntarily share more water with municipalities and industry.