It brings me back to 1982, when I first moved to California from Texas. Less Antman had the California Libertarian Party hire me as research director, and one of the biggest political issues at the time was water. The fight was over a ballot initiative authorizing construction of a Peripheral Canal around the San Joaquin-Sacramento River delta to divert more water to Central Valley farmers and southern California. It would have been an enormous, expensive boondoggle that united environmentalist and libertarians in opposition. I ended up not only writing but speaking before all sorts of audiences about the issue. My studies made me quite familiar with the socialist bureaucracy, much of unelected with taxing power, which manages California's feudalistic water system, severely mispricing and misallocating water.

Fortunately, the Peripheral Canal went down to defeat. But little was done to reform California's water system, and Lazear provides an excellent survey of the myriad drawbacks still plaguing it today. His solution: "Rather than praying for rain, we should get government out of the water-allocation business." One noteworthy detail he doesn't mention is that even in non-drought years, because the system encourages overuse of water, the Central Valley's ground water continues to get depleted. This ensures that each subsequent drought will generate ever more serious problems. Worst of all, one solution being pushed during the current drought is a jazzed up version of the Peripheral Canal. 

HT: Corrie Foos