How the One Percent Deals with Drought in California

Anna Louise Bardach tells the story of Montecito, California, an extremely wealthy enclave near Santa Barbara, which has enough money to buy its way out of the drought.

2 minute read

August 26, 2014, 12:00 PM PDT

By James Brasuell @CasualBrasuell


Gated House

Graham Prentice / Shutterstock

"Though gifted with green hills and splendid ocean views," writes Bardach, "Montecito has the geologic misfortune to have been built on land with precious little water—indeed, less water than any other part of the central coast of California. An aquifer runs nine miles under southern Santa Barbara County, but only a tiny sliver extends into Montecito."

Since the beginning of the year, the Montecito Water District has implemented restrictions like ceasing construction on new homes, prohibiting the construction of pools and spas, and existing pools and spas being exempt from town water.

"For the most part, residents have embraced the restrictions," explains Bardach, "allowing Montecito to cut its water usage by 48 percent and leaving vast aprons of yellowed lawns as evidence."

The catch, however, is the scofflaws. In May, for instance, "837 defiant—or careless—residents coughed up $532,000 in penalties, or a collective overage of about 13 million gallons of town water." 

Then there are cases like Pat Nesbitt, CEO of Windsor Capital (the majority owner of Embassy Suites). Nesbitt has "long sought to convince local officials that his polo field, which is part of his 20 acre estate, is entitled to a discounted agricultural water rate. And he’s sued the Montecito Water District—twice, according to the water district’s attorney—to make his case." (He failed.)

Others are simply paying to ship water in from other, also presumably drought stricken locations. The most famous example, according to the anecdote that opens the article, is Oprah's 40-acre estate.

Sunday, August 24, 2014 in Politico Magazine

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight