Unless we are talking about mad max level droughts, market rates for water would have little effect on water cost provided by utilities. The cost of treatment a

Unless we are talking about mad max level droughts, market rates for water would have little effect on water cost provided by utilities. The cost of treatment and distribution is the biggest cost by far. You can also regulate the cost of bulk water differently than residential water. Make the first X gallons available cheapily and then charge more for usage over that amount.