The western water laws are enshrined in states constitutions. It's going to get a lot worse before the laws are changed.
Just one example: https://www.elpasotimes.com/story/news/2016/07/06/el-paso-wa...
We have know this for more than 140 years [0].
I strongly recommend that everyone living in the western United States read at least the introduction[1] to Beyond the Hundredth Meridian[2]. The introduction is more relevant now than it was when it was written 67 years ago, itself 75 years after the publication of Lands of the Arid Region.
Previously:
https://news.ycombinator.com/item?id=27910098
https://news.ycombinator.com/item?id=18098899
https://news.ycombinator.com/item?id=26964166
0. https://pubs.usgs.gov/unnumbered/70039240/report.pdf LANDS OF THE ARID REGION John Wesley Powell 1878
1. https://erenow.net/modern/beyond-the-hundredth-meridian/1.ph... Bernard DeVoto 1954
2. Beyond the Hundredth Meridian: John Wesley Powell and the Second Opening of the West ISBN:9780140159943 Wallace Stegner 1954
https://www.motherjones.com/wp-content/uploads/LA-vs-Exports...
"Previous studies have shown that a reasonable estimate of the runoff volume is 15-20% of the applied water."
Source: https://www.almonds.com/sites/default/files/2020-04/Almond-I...
It takes about a gallon of water to produce an almond, and the residual ends up in the air, where it's basically useless.
I mean, you don't see the state repealing rules about low-flow showers and toilets because "the water stays in California", right?
Sure prices will go up on goods from those water ways, but maybe they won't..maybe they'll do better more environmental farming to preserve water, like vertical farming.
Source: https://blogs.berkeley.edu/2018/01/26/the-cost-of-irrigation...
Listened to this book describing what you predict while driving across the Central Valley... It sure does feel like just a matter of time.
But yeah, it's going to get a lot worse.
In general US agriculture is extremely wasteful of water. We could drastically cut water consumption by adopting farming techniques used in Israel, but food costs would increase.
I doubt most of the stakeholders paid anything for their water rights. Perhaps, if there is any compensation, it would be equal to what they paid for the actual rates originally inflation adjusted.
Taxes seem like an obvious option. I can't think of any constitutional reasons why they can't tax you for drawing from natural springs, else all new taxes would be a constitutional issue. You may not even need to nationalize then.
You might also be able to simply ban private consumption of water from waterways. Nothing is being seized, they still own the water, it's just worthless because they can't use it. Similar to what would happen if we ban coal. I don't think we'd have to go track down everyone with rights to a coal vein and pay them what it's worth.
Financially feasible? Not yet, and maybe not ever. We’ll see.