Pricing does not work, bad side effects
We have ample water here in the Southeast, but a 1000-year dry cycle left the reservoirs low. We did the right thing and conserved (ceased lawn watering and car washing) and the reservoirs refilled in a year or so.
But the tree-huggers insisted on raising water rates. People limited their discretionary uses and water revenues dropped so far that water and sewer plants were no longer self-supporting. This necessitated further increases and seriously impacted low-income families. These further increases led to even less use. We've moved from a stable point to a cycle of increases and a reduced quality of life.
The right solution is to discourage migration to water-short areas, not to discourage water usage in areas where the supply is ample.
