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Even after heavy snow and rainfall in January, western states still face an ongoing drought risk that is likely to grow worse thanks to climate change. A whopping snowpack is good news, but it doesn’t reduce the need for long-term planning. Confronted with a shrinking supply of water for agriculture, industry and residential uses, water agencies have pursued different strategies to encourage water conservation. They have nudged customers to reduce water use, limited outdoor watering and offered incentives to rip out lawns. On the supply side, there are innovative ideas about using heavy rains to recharge groundwater. Basic economics teaches us that a higher price for water would encourage conservation. Up until now, however, concerns about harming low-income households have limited discussions about raising water prices to reduce demand. We know that it’s hard to pay more for essential goods such as food, energy and water, especially for lower-income households. R...