To keep the water running in LasVegas, recognize scarcity and let water rates rise-- double or even triple. Encourage homeowners to trade water rights. Let the market determine how much water people use, not the water police.
China's growing wealth and economic power means it also vested in seeing the US propser as it holds a huge amount of US debt and remains an important trading partner.
Terry Anderson, Gary Libecap
Where water markets are being allowed to work, prices reflect scarcity and trades provide incentives to conserve.