The Los Angeles Water Crisis

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LZ Granderson: Los Angeles is looking more closely at what you would call local supplies. He says it's a huge problem given that they have millions even billions of dollars of debt. LZ: They're also trying to clean up the groundwater that's been contaminated by defense industry chemicals. And now they're going into recycling wastewater so that can be put back into the system and used again.

David Zetland of Leiden University College in the Netherlands and author of Living with Water Scarcity talks with EconTalk host Russ Roberts about the challenges of water management. Issues covered include the sustainability of water supplies, the affordability of water for the poor, the incentives water companies face, and the management of water systems in the poorest countries. Also discussed are the diamond and water paradox, campaigns to reduce water usage, and the role of prices in managing a water system.