How Climate Change Will Affect California's Water Supply

California has an intricate and multifaceted system of water management. The state’s $1.1 billion water market allocates a concentrated supply to the areas that need it most. From farming to landscaping and personal consumption, there is a constant tension in the state’s supply and demand of this life-sustaining resource. 

Rivers, Lakes, and Aquifers

California's water markets and infrastructure

Pumped from underground aquifers, groundwater has a contentious history of use, especially in the state’s thriving agricultural production industry. This led California to pass the Sustainable Groundwater Management Act (SMGA) in 2014, a first-of-its-kind law aimed making groundwater resources sustainable by 2040.

Where Water is Used

ENVIRONMENTAL

Environmental use includes natural water sources like rivers being protected by federal and state laws, water that supports existing habitats both within streams and creeks as well as within wetlands and wildlife preserves, and water that is needed to maintain water quality for other uses like agricultural and human consumption. 

AGRICULTURAL
URBAN

The Climate Change Threat

The supply and demand of California water are geographically and seasonally disconnected. However, climate change threatens to upset supply, change demand, and alter the connection between the two even further.

The precipitation patterns in California have become more variable over time. Scientists with the California Natural Resources Agency have suggested that there will be more dry days in the coming years, with short instances of significant downpours. This will exacerbate the geographic supply disparity within the state, with northern California getting even more water and the more arid southern areas receiving less rain through the year.

Severe weather events like droughts, heavy rains and wildfires have already become more common. Estimates from NOAA, using the Palmer Drought Severity Index, suggest that droughts will be more severe in the coming years, leading to both periods of extremely limited supply and periods of intense flooding.

These intense storms can add pressure to existing reservoirs and aging infrastructure, leading to potential flooding in certain geographies while making it more difficult to move water to areas of high demand. As sea levels rise, more salt water is introduced into the surface water systems, leading to higher costs for water purification and threatening supply numbers.

At the heart of these challenges lies a unique market for water with disparate participants. The ability to manage the pricing risks ahead may ultimately determine where and how this precious resource is used. 

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