This type of policy-making is just as short sighted as the policies made after 9/11 (USA Patriot Act), the Enron debacle (Sarbanes Oxley), or the recent cut in the short-term federal-funds rate to "save" the US economy. When people are in a hurry to make a decision and "get things done", those who stand to benefit the most drive their hard bargains and get "deals of a lifetime" slipped into sloppy, rushed legislation (cf. public choice theory). Look for the same with respect to water policy as the imbalance between supply and demand worsens in California, the Western US and the rest of the world.
Bottom Line: Water policy, like all policy, should be made for the long-term to address long-term problems. Policy should ignore short-term fluctuations to allow people to muddle through in sensible ways.
BTW, Keynes complaint that "in the long-run, we are all dead" does not refute this analysis or recommendation. Keynes was right that psychology matters, but he was wrong to assume it could be manipulated by Brilliants such as he.