Economic Productivity of California Water

This short summary presents information on total employment, total revenues/income, and total water use in California for various industrial and commercial sectors, using data through 2004. Far more detailed information, data, and analysis are available from the Pacific Institute and complete data sources are listed at the end of this memo.

There are gross disparities in the “economic productivity” of water use. Even modest reallocations of water from one sector of our economy to another can produce significant changes in job availability and gross state product, but such reallocations must take account of regional economic priorities, job displacement and retraining issues, equity, and environmental side-effects. The data in this analysis suggest that carefully tailored water and business strategies, however, can lead to substantial benefits for California’s economy, job picture, and agricultural production.