Perhaps. There's two problems: (1) The current system in the West is rights based. First person to make productive use of water gets the right to use that wate

Perhaps. There's two problems: (1) The current system in the West is rights based. First person to make productive use of water gets the right to use that water forever. It's an odd system, but it's basically land-ownership for water resources. It's easy to see the flaws in the system. (2) You have to invent a new system. It's a fun thought exercise, but there are a lot of things to consider. The environment needs water. Should a farm making productive use of water have to pay as much per unit as an urban household using it to water a lawn? Lot's of considerations. Now that you've done that, you have to get the law changes across the entire West. The entrenched interests will lobby energetically against the change. The people who would benefit probably aren't paying enough attention to care. So the change loses.