Thirsty Cities Drill for Water
pulitzercenter.org
pulitzercenter.org
In particular, Western US states have seen particularly rapid depletion in recent years that could threaten the viability of cities and agriculture in the coming decades.
Popsci overview: Cadillac Desert by Marc Reisner https://www.goodreads.com/book/show/56140.Cadillac_Desert
USGS Report: https://pubs.usgs.gov/sir/2013/5079/
Fictional horrorshow: The Water Knife by Paolo Bacigalupi
I'll just add: and with fracking, it only gets worse. 500+ chemicals injected into the aquifer, that took millions of years to become what it is... it's hubris thinking this isn't a problem.
"Oops, we broke containment"
Farms can't afford to pay municipal rates which people washing their cars do. If you look at the cost of a car wash paying even say 0.1 cent per gallon would make a minimal difference, but no farm could afford to pay 0.1 cent per gallon.
Any system that forces farmers to compete with other users of water means the farmers lose.
My point: If you build a company in a location which is unviable in the long term, should you be subsidized as to not move to a more viable location? I think such subsidies are unviable in any but the short term, and are counterproductive for every other party involved.
However, I still think an auction system would create less distortion than case-by-case measures to de-prioritize agriculture in allocation conflicts.