The pricing for water in California is highly asymmetric, with urban users paying significantly more (one to two orders of magnitude more) for water than agricultural users. If agricultural users are charged a higher rate (or equivalently the state cuts back on their subsidies ) and "free' rights to water are regulated and distributed more evenly across the population then wasteful use of water will immediately becom…
Agricultural water and municipal drinkable water are two different things. The farm water does not come from the same distribution system as city water. For example, pulling water straight from a river to irrigate farm is agricultural water. Maybe the cost of agricultural water is too low, it probably is at least in some places. However, it is not clear at all that agricultural uses even compete with urban uses. Urba…
Most today comes from the State Water Project, which pumps all the way from northern California where the Sierra Nevadas drain into rivers and this is the principle source for both Los Angeles and for the Central Valley. Los Angeles also still gets some from the Colorado River pumped across the Mojave, but this is arguably even more insane as it feeds four major metros in Los Angeles, San Diego, Las Vegas, and Phoenix, none of which have their own local water sources to sustain a large city.
LA basin was a pretty terrible place to put the country's second largest metro. LA did originally get its water from local groundwater basins, but those tapped out when the population was still around 6,000. It was solved by building the original Los Angeles aqueduct to pump all the way from Owens Valley. What other city can say its most famous street is named after a water engineer?