Most urban water users are paying more or less the cost of these systems. Cal is San Diego subsidizing the water for its citizens through the general tax revenues. A lot of the systems that they're using have been built 50 or 100 years ago. The engineering organizations say that the US has a D grade on infrastructure.
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.