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Better Ways to Slake Thirsty Cities
Gary Libecap, "Rescuing Water Markets: Lessons from Owens Valley," PEP, C, January 2005 (perc.org)
In the early 1900s, the potential of Los Angeles to be a major city was obvious, except for one serious problem--lack of available fresh water. The city's solution was to purchase land in western California specifically, the Owens Valley that had plenty of agricultural water.
These purchases became a byword for urban exploitation of rural folk, a characterization immortalized in the Oscar-winning 1974 movie, Chinatown. University of Arizona professor Gary Libecap recently re-examined L.A.'s water buy, and found a picture quite different from the Hollywood version.
The Owens Valley landowners were not bowled over by the Los Angeles government. Libecap relates their hard negotiating tactics with the L.A. Water Board, and finds their property values increased by millions of dollars more than they would have ...
Source: HighBeam Research, Better ways to slake thirsty cities.(Brief Article)