Sounds like the state needs to let the price of water rise naturally according to its increased scarcity. That should raise the price of nuts, which will lower

Sounds like the state needs to let the price of water rise naturally according to its increased scarcity. That should raise the price of nuts, which will lower demand and bring water consumption back to equilibrium. Hold the price down on a resource that has its supply drastically cut and we'll end up with scarcity.