Abstract
In the course of decentralization, pastoral communities in Namibia have had to find new ways to share their most salient resource, water, and the costs involved in providing it. Using data from sixty communities, we examine (1) whether and to what extent different sharing rules emerge, (2) how variations can be explained, (3) how rules are perceived and influence success, and (4) what economic consequences they have. Our results reveal that either all members pay the same (numerical equality) or payment is according to usage (proportional equality). We find that although proportional equality provides more success, the rule can only pertain where the state maintains an active role. Simulations show that where it does not prevail, wealth inequality is likely to grow. These findings have political implications and suggest that, in the context of the widespread decentralization policies, the state should not withdraw if it aims to ensure the success of common-pool resource management and to fight poverty.