Imagine it this way.  Pretend all the water is being sold, no water rights, and the government is free to do whatever it wants within reason.<p>The government needs a certain amount of money to keep up infrastructure and maybe to subsidize households.  It sells this guy 1300 gallons an hour at a high price, and uses that money to <i>not</i> sell a farm 8000 gallons an hour of discount water.<p>Now you have less water being used, and you send the rich purchaser a thank you letter.<p>If you charge for externalities, then buying more is not a bad thing.  If you overcharge for externalities, it can even be a good thing.<p>So the question is not &quot;is he using a lot of water&quot;, the question is what he&#x27;s paying for, and whether externalities are being offset.<p>The price in California is probably too low today, but that could easily be changed.