> the price of the water can’t be equal to marginal cost of getting more water
Increased demand by definition means consumers will pay more for the same quantity. Even if the marginal cost was flat it is in the producers interest to raise prices. You're essentially asking why markets have to do what markets do.
> Water can be piped in from elsewhere, can be made from reverse osmosis from even briney aquifers or seawater or even sewage.
Do you think that costs the same as pumping water out of a lake or water table?
> is it just a mispricing of the water?
...You think a drought is a mispricing of water? As if water was more expensive, there would be no shortage? A draught is a mis-cost of water; when water becomes more expensive than is sustainable.
Increased demand by definition means consumers will pay more for the same quantity. Even if the marginal cost was flat it is in the producers interest to raise prices. You're essentially asking why markets have to do what markets do.
> Water can be piped in from elsewhere, can be made from reverse osmosis from even briney aquifers or seawater or even sewage.
Do you think that costs the same as pumping water out of a lake or water table?
> is it just a mispricing of the water?
...You think a drought is a mispricing of water? As if water was more expensive, there would be no shortage? A draught is a mis-cost of water; when water becomes more expensive than is sustainable.