Interesting article on deal brokered between federal government and abstractors from Colorado River, under which the federal government will pay their irrigation districts, Native American tribes and cities $521 for each acre-foot (around 1.5 megalitres) of water they don’t use.

Link to full article

For the first time in this drought-stricken century, a new price for water in the West has been set – and it’s 25 times higher than what farmers have paid for the last 75 years.

Arizona, Nevada and California recently agreed to reduce their water consumption from the Colorado River by 13% through 2026. The federal government will pay their irrigation districts, Native American tribes and cities $521 for each acre-foot of water they don’t use.

This agreement is the start of the end of agriculture as we know it in the West, but not just agriculture. For every drop of water used, industries – from farms and ranches to data centers and power plants to ski resorts and golf courses – must determine whether it pays more to use the water, or to avoid using it.

And the price of using it will only increase.

Some businesses will become more water-efficient. Some will move. Some will close.