From California to Colorado, from North Dakota to Texas, the Western United States is being ravaged by what some are calling possibly the worst drought in the modern era. Reducing water use and attempting to recycle limited supplies will not work.
Think about it. The water doesn't leave the planet. We just have to exert dominion over it. The only solution for supporting the population and economic activity of the West is to improve our management of the water cycle as a whole, and significantly increase the water availability, and the productivity of the water cycle.
Managing the flow of water, not the flow of money, is an example of real economics, as understood by Alexander Hamilton, Abraham Lincoln, and Lyndon LaRouche.
See also Ben Deniston's recent post, "A 'Builders Party' Could Fix the West's Exceptional Drought Crisis."