A year later and still worth reading...
Environmental Economics and Government Policy -- a panel discussion by economists who have worked in government. Bad news: they have not ended any stupid policies. Good news: they've prevented (occasionally) even worse policies.
Poll results -- food, energy and water -- You said that we need more government involvement in water, but I'd say that government involvement is one reason water policies are so bad.
An easy way for regulators to deliver water quality
The link between cheap water and bad finances, i.e., a culture of macro-mismanagement in Europe (and elsewhere) that affects both water and fiscal outcomes.