Fourth, it is the State’s responsibility to determine water allocations within a country’s boundaries that balance the objectives of a high-growth, dynamic economy with societal notions of fairness and equity. When water supply is limited, its allocation among different users and uses falls to the State. Households cannot easily perceive how their actions with respect to water use affect users through a river basin or water-resource system. An individual water user would not typically consider how his actions would affect others on the system. However, it is the responsibility of the State to coordinate the actions of different water users and to resolve water allocation conflicts among its citizens. Failures of coordination and conflict resolution are perceived as failures of the State.