The Evolving Market for Water in an Era of Droughts and Efficiencies

Lynn Broaddus and Robert Puentes report in The Avenue on the new world of water—where some drought stricken areas are striking deals to acquire other people's water and other areas are circling the wagons to preserve what they have. Waukesha, Wisconsin is seeking to pump water from Lake Michigan to its residents through a $200 million, 20-mile pipeline that requires approval (as part of a seven year-old agreement) from eight states bordering the Great Lakes. "The idea behind the Great Lakes-St. Lawrence River Basin Water Resources Compact is to prevent thirsty states in the West from tapping into the lakes."

The report goes on to questions the necessity of such a large infrastructure investment when trends show a general decline in water usage around the country and new technologies making water reuse and recovery easier. "For example, San Francisco now requires new buildings over a certain size to treat and re-use wastewater on-site, a move that will catalyze innovation and increase the availability of these technologies in other parts of the country. This scaling down of water technology gives customers new affordable options and providers beyond water utilities, not unlike what rooftop solar is doing to the energy utility business."