When scarity occurs during drought conditions, water pricing alone is limited on how effective it can be in managing its distribution. Safety and health water uses for most people will trump agricultural and industry usage. However, proper planning can avoid these dire situations that can cause severe long-term economic ramifications. That means water rates must assume all of the potential future cost for each customer category and how to properly price the distribution of water during normal market conditions. Water rates need to include the total present and future cost for implementing water efficiencies that will help prevent future water crisis from ever occuring.

Local communities relying on a local water supply realize that economic uses, residential uses and environmental uses are all tied together. Creating a sudden change in pricing structure or tipping the balance in favor of any category can have significant ramifications on the vitality of that community and needs to be carefully evaluated. The community must be fully engaged in a discussion that evaluates historical issues as well as new demands on water supply prior to developing a management and pricing plan for that water. How we price water is not an academic exercise. The economy (employment and home values), recreation and the environment all can be signicantly impacted by sudden changes in how we price water.