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Gov. Jerry Brown signed legislation on Tuesday overhauling the state's management of its groundwater supply, bringing it in line with other states that have long regulated their wells. This is really important because california has large agriculture based businesses (central valley). In fact, the oppositions to the legislature were people in the agriculture business. This potentially allows water companies and regulators to intervene if water use is excessive or improper. This is an article directly discussing scarcity of water and natural resources and how the government regulates these resources. This passing of this legislature could also have some opportunity cost along with it; less water=maybe more expensive food, less food, more chance of dying crops (?)

NEW DELHI: The Rural Development Ministry Tuesday ordered district administrations to ensure that water conservation work like construction of check dams and de-silting of traditional water bodies are taken up under the rural job act to mitigate drought-like situation.

This article discusses how water is being sold too cheaply, even when there is a drought. Here price mechanism should come in to regulate and allocate scarce resources. It says that people consuming the water have no incentive to stop wasting if the price is so low

Also, Water is quite inelastic since people will continue to use it (largely because we need it). The fact that it is so inelastic can actually be dangerous. this is because we continue to consume it whether or not the price increases.

This article talks about high demands for water and dwindling supply. This is forcing government/companies to raise water prices so it would restrict usage of it. Like California where drought is causing high prices and low usage of water. Water has pretty neutral elasticity so government and businesses can make decisions capitalizing on its elasticity.