I agree that in some places you would be right. However, in the case of both the southwest and here you are wrong - it is precisely because the problem isn't too much population for the water resources available, but rather a system that gives a small group the bulk of the water, that market allocation would mean a drop in the cost of water for your average consumer. But if you prefer to avoid the market that's fine with me, just have the government redistribute the water by fiat as they seem to be proposing.