The price of water going into Americans’ homes often does not even cover the cost of delivering it, let alone the depreciation of utilities’ infrastructure or their R&D. It certainly doesn’t account for other costs imposed by water use — on, say, fisheries or the environment — caused by taking water out of rivers or lakes.Consumers have little incentive to conserve.
Despite California’s distress, about half of the homes in the capital, Sacramento, still don’t have water meters, paying a flat fee no matter how much water they consume.
Some utilities do worse: charging decreasing rates the more water is consumed. Utilities, of course, have little incentive to discourage consumption: The more they did that the more their revenues would decline.
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Their water rights are primarily subject to state law. In the West, they have been allocated by a method that closely resembles “first come first served.” The first farm that drew water had a right to whatever it needed pretty much forever. Junior users — who arrived later — had to stand in line.
Farmers pay if the government brings the water to the farm, say via an aqueduct from the Colorado River. But the fees are minimal. Farmers in California’s Imperial Irrigation District pay $20 per acre-foot, less than a tenth of what it can cost in San Diego. And the government has often subsidized farmers via things like interest-free loans to cover upfront investments. (An acre-foot is the amount it takes to cover one acre of land a foot deep in water.)
This kind of arrangement helps explain why about half the 60 million acres of irrigated land in the United States use flood irrigation, just flooding the fields with water, which is about as wasteful a method as there is. It also helps explain why underground water reserves declined by 53 million acre-feet between 2003 and 2014, about twice the volume of Lake Mead.
This is hardly the only obstacle to conservation.
A farm that doesn’t use its full allotment of water risks forfeiting it for not putting it to “beneficial use.” And any water saved automatically flows to other farmers with junior rights.
Farmers in many states are theoretically allowed to lease unused water. But the many holders of junior rights can block them. And they are legion:
California has granted rights to five times its average annual flow of surface water.
These restrictions have perverse consequences. San Diego, for instance, isbuilding the nation’s biggest desalination plant to produce fresh water at a cost of about $2,000 per acre-foot.
But alfalfa growers in Southern California last year used hundreds of billions of gallons growing alfalfa that might fetch at best $340 a ton, or $920 per acre-foot of water.