This is absolutely true in the general sense, but is negated by the rents being given to those who own water rights due to prior appropriation. In the absence o

This is absolutely true in the general sense, but is negated by the rents being given to those who own water rights due to prior appropriation. In the absence of a payment for these water rights (analogous to the payment we pay for spectrum rights on radio frequencies), there is going to be a misallocation of water and waste. An essay about the issue: https://www.progress.org/articles/water-creates-rent https://www.progress.org/articles/water-creates-rent