Not saying it is right or wrong, but traditionally we would use a market to decide that, where the new people can buy the land / water at a higher price if it

Not saying it is right or wrong, but traditionally we would use a market to decide that, where the new people can buy the land / water at a higher price if it is worth more to them than the alfalfa farmer. This adapts the goals of people based on their economic activity. But water right are a complicated chain and mostly not treated like a market in California.