Inaction’s Economic Cost for California’s Water Supply Challenges

California’s water system is in for challenges in coming decades as climate, groundwater policy, and environmental regulations reduce availability and increase variability in water supplies for agricultural and urban uses. A previous report estimated 4 to 9 million acre-feet (maf) per year of unavoidable reductions in existing water supplies, 12% to 25% of today’s water use (Lund et al. 2024). This report estimates the economic costs of not responding to these reductions in water availability.