Northern California reservoirs that provide communities throughout southern California with much of their imported water are on track to reach the lowest levels they have ever been. Collectively, Lake Oroville, Shasta and San Luis Reservoir will dip below 30% full in a matter of weeks.My solution? Raise prices! (Surprise!)
Bottom Line: If demand is too strong at low prices, the reservoirs will be drained. For every foot a reservoir drops, increase the price of an acre-foot of water by $10-50. The level will stabilize pretty quickly as water becomes "too expensive to waste."