Comment by kmeisthax

Basically any discussion of water allocation is stupid. We already have a way to allocate water (or, really, any scarce resource) - markets. Instead of arguing over whether or not a hamburger is worth a car wash's worth of water, bill the person using the water for that amount of water. Let the water user and the price discovery mechanism fight it out. If it is not worth it to them, then they can move to somewhere where water is cheaper.

We don't do this, at least not in the western half of the US. Instead, the biggest consumers of water have "water rights" - the right to use a certain amount of water every year, for free, simply for owning a particular piece of land. And these water rights were all staked out based on estimates of the Colorado River that were wildly optimistic, so there's a century-long waiting list of claims that will permanently supercede your own if you fail[0] to actually consume the water you are entitled to.

This is insane, and it leads to some pretty insane incentives. Because agriculture was here first, it has the strongest claims to water, and a pretty heavy incentive to waste as much water as they are legally allowed to. A lot of the discussions surrounding water usage assume that because agriculture is necessary for human survival, that the water it uses is also necessary. It's not - and the only way to get an industrial water user to actually care about their water usage is to actually bill them for it.

Once we have an actual market for water (not just water "rights"), then we can start talking about what usages are actually necessary - i.e. what uses should we explicitly subsidize through taxes rather than implicitly subsidize through a terribly designed system.

[0] In the interest of fairness, I ran this comment through Google's chatbot, which would like you to know that TECHNICALLY SPEAKING, it takes ten years of intentional disuse to lose a water claim, and that there is a market for water rights. My counterargument is that most farmers do not care about how much water they can not use, and that a market for water rights is not the same as a market for water, because farmers can still decide to just use the water for free. The pricing mechanism cannot work if there are a class of protected users who do not feel backpressure from the pricing mechanism.