Game theory is applied to groundwater management conflict in the Alto Rio Lerma Irrigation District located in the state of Guanajuato in Mexico. The major agricultural constraint in this irrigation district is water. From October to June there is a deficit of rainfall with respect to evapotranspiration. The short period of rainfall is reflected in high groundwater withdrawals from wells, generating both aquifer overexploitation (overexploitation coefficients between 1.2 - 1.4) and the consequent subsidence (the most affected places have 8 cm per year in the average). Besides, the current management practices in the irrigation district, like high fertilizers and pesticides application together with the irrigation management, produces environmental problems: nitrates and pesticides percolation that may cause aquifer contamination. On the other hand, farmers need to maximize their net benefit increasing yields. In summary, the problems in the ARLID may be classified as economic and environmental.
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