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Dec 31, 2007

Water in The West

The western portions of North America, including northwestern Mexico, have always had their share of water problems.

As drought grips those areas and population continues to grow, the levels of once mighty reservoirs like Lake Mead are falling dangerously low.

Nevada policy makers and Las Vegas officials are in a panic. In 2003, New Mexico Governor Bill Richardson and Arizona Governor Janet Napolitano each set up drought task forces in states already plagued by water shortages.

Farming areas are now endangered as well. In Imperial Valley, a large agricultural area east of San Diego, California, farmers are now paying $17 per acre-foot of water. Households in San Diego using the same amount of water would pay $1,311. That's not even a contest!

(Source: The Economist, December 8, 2007).

And yet, California, with its great growing environment, produces massive amounts of produce for the U.S.

The conclusion is obvious. Demand commands price. As the people continue to flock to the southwest, drawn by temperate climate and beautiful skies, the price of water will continue to rise.

Farmers will not be able to compete in the water-price wars. The same is happening in west Texas and southern New Mexico, as farms are abandoned, and urban populations grow.