Regardless who is using the water is a man made disaster not one created by nature or climate change. Turning a desert into a breadbasket requires a large amount of water and eventually your going to exhaust your supplies when there no one was ever really charged proper rates for the water they used. They kept the prices artificially too low for too long that people became dependent on the prices and now feel entitled. In a way they are, the government through mismanagement created it.
Still would it not be a good idea to treat areas of severe drought like those of severe flooding? You will be paid for the lands and no one comes back?