LAUSR

The increasing global demand for limited groundwater resources, especially in (semi-)arid regions, might lead to conflicts among stakeholders. To address this, Bankruptcy Theory methods can be applied to reallocate water resources more equitably, particularly in deficit cases or competing claims. This study introduces a two-level bankruptcy framework, identifying plains as stakeholders and their beneficiaries (agriculture, drinking, and industry). To assess the stakeholders’ relative importance, a set of sustainable development indicators is proposed. Additionally, a new method, Weighted Combinational Contribution-Claim (WCCC), is introduced, considering both claims and contributions in resource distribution. This method aims to support parties that contribute more to recharge of shared water resources, ensuring they face less deficit. The framework was applied to the Neyshabour-Ataiyeh-Sabzevar plains in Iran. According to the Bankruptcy Allocation Stability Index (BASI), the preferred deficit-based method in the first reallocation level (among stakeholders) was the Weighted Constrained Equal Losses (WCEL), allocating 77% to Neyshabour, 11% to Sabzevar, and 12% to Ataiyeh. Conversely, the preferred resources-based method was the Weighted Constrained Equal Awards (WCEA). At the second level, WCCC was selected as the preferred deficit-based method for all beneficiaries, allocating 87%, 11%, and 2% of the shared resource to agricultural, drinking, and industrial demands, respectively. Among the resources-based methods, the Weighted Proportional (WPRO) was favored by Neyshabour’s beneficiaries, whereas the Weighted Talmud (WTAL) was preferred by the beneficiaries of Sabzevar and Ataiyeh. This novel approach ensures fair reallocation among stakeholders and their beneficiaries, adhering to sustainable development goals and optimizing resource distribution in water management.