California reservoirs are still much lower than normal. The rains helped, however the severe crisis still exists. Aguanomics says this is not the time for California to forget about the problem. Major structural changes are needed in California’s water policy.
California and other western states really do need to focus on reforming outdated institutions for managing water, i.e.,
- Deciding on the split between environmental and economic flows
- Improving the design and function of water markets
- Monitoring and regulating groundwater
- Pricing urban water for costs AND scarcity (that latter price should be zero when water’s abundant)