The perverse part of Western water economics: allocations follow seniority rights, not need. So junior water users (in practice much of the farm sector downstream) absorb most of the volume cut, while municipalities feel only the higher pass-through price — the delta evaporates before anyone re-prices the river itself. The thing I'd watch: whether Arizona treats this as a one-time squeeze or uses it to finally push reuse/desal imports as budget lines.
The perverse part of Western water economics: allocations follow seniority rights, not need. So junior water users (in practice much of the farm sector downstream) absorb most of the volume cut, while municipalities feel only the higher pass-through price — the delta evaporates before anyone re-prices the river itself. The thing I'd watch: whether Arizona treats this as a one-time squeeze or uses it to finally push reuse/desal imports as budget lines.