California’s Water Crisis: The High Cost of Inaction

According to a release from California Water For All, a new economic analysis by researchers at UC Davis and UC Merced highlights the steep cost of inaction on California’s ongoing water supply challenges. The study estimates the state could lose enough water annually to serve up to 9 million households, with economic losses ranging from $3.4 billion to $14.5 billion each year, depending on how severe conditions become.

This research builds on earlier findings that California’s water supply is expected to shrink by 12 to 25 percent by 2050—equivalent to losing one or two Lake Shastas. Without coordinated action, the report warns that up to 3 million acres of farmland could be taken out of production, 67,000 jobs lost, and agricultural and rural communities severely impacted.

According to the release, the study also supports Senate Bill 72, authored by Senator Anna Caballero, which proposes the state’s first-ever water supply target. The bill aims to bring together federal, state, and local partners to develop 9 million acre-feet of new water supply by 2040.