The Economic Value of Local Water Supplies in Los Angeles

Abstract

Los Angeles imports water over long distances to supplement local supplies. Reduced reliability of the available imports is driving many local agencies to promote conservation and enhance local water sources. These include stormwater capture, water reuse and groundwater. But financial considerations are often a significant impediment to project development, especially when comparing new and existing sources. Here we demonstrate a comprehensive approach for evaluating the economic implications of shifting to local water reliance in Los Angeles County. We show that local water supplies are economically competitive. Results from integrated hydroeconomic modelling of urban water in Los Angeles identify cost-effective water supply portfolios and conservation targets. Considering costs across the ‘full-cycles’ of urban water supply that span agency boundaries yields better comparisons of planning alternatives. Throughout the region, many water retailers could successfully mitigate effects of imported water cuts while still supporting drought-tolerant landscapes, but some would suffer due to over-reliance on imports. Updating economic assessment methods would support needed innovations to achieve local reliance in Los Angeles, including infrastructure investments, institutional reforms, many more drought-tolerant landscapes and reallocated groundwater rights.

Erik Porse

Director, California Institute for Water Resources and Associate Cooperative Extension Specialist

Interdisciplinary reseacher with expertise in engineering, environmental science, policy, and systems analysis.