California grows more than half of the nation’s fruits, nuts and vegetables (over 27 billion gross cash income in 2000), however, the State is facing water shortages, mainly due to urbanization. Agriculture is by far the largest consumer of freshwater. The California Department of Water Resources predicts a water shortfall of 2.4 million acre-feet in years of average precipitation and 6.2 million acre feet in drought years by 2020.

Pilot Analysis of Global Ecosystems: Freshwater Systems

California Water Plan: Bulletin 160-98

Water Marketing Obstacles and Opportunities

Saving Our Streams Through Water Markets

WaterBank

Less than 1% of the world’s fresh water is regularly renewed by rain and snowfall. While the renewable water is fairly fixed, the available water per person diminishes as population grows. Virtually all the population growth expected during the next few decades will be concentrated in the urban areas of the world, thus intensifying the water shortages. By 2025, as much as two thirds of the world population would be under water stress conditions.

World Population Prospects

The State of World Population 2001

World Urbanization Prospects

Comprehensive Assessment of the Freshwater Resources of the World