I caught Matt Yglesias's proposals for water-rights reform in the west (I guess attending the Aspen Ideas Fest makes you an expert on Western issues) ... and I think he's right - except that what he describes is very similar to the way the west (CO at least) already divides water rights. The only difference is that, although many of his suggestions take place prospectively, most of the rights have already been appropriated in a manner that doesn't favor the most efficient use. Yglesias references this Brookings report on suggested alternatives. Unfortunately - even if the legal hurdles are overcome (it suggests a national system, but water rights are traditionally in the state's province and I see a big federalism problem looming) it would require total chaos in dismantling existing structures and then an improbable 'equitable' re-distribution.
Agriculture in the West soaks up like 75% of the supply so that we can grow corn and wheat in the prairie. This is horribly inefficient, but the problem is, under our Prior Appropriation system Ag owns most of the historic rights. Personal and Municipal use is miniscule, but still must shell out a lot of money to buy more rights to keep up with growth (and there is the market). The most immediate way to free up more water would be to have farmers switch to crops that require less water - or switch to wind or solar farms and - and then re-distribute the Ag water to the cities under a market allocation system that would encourage effeciency.
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With corn and bean futures at all-time highs, how do we encourage farmers not to plant crops that will make them even more wealthy than they already are? Absent demand created by ethanol production, which should be abandoned, it seems that the world still needs to be fed by Iowa and the Great State of Illinois. My solution to the West's water problems; NUKE LAS VEGAS!
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