Water Shortage in Las Vegas

Around 1890, a study was performed on the potential growth of LA due to water limitations. It was scientifically proven that the water supply would limit the LA population to a maximum of about 400,000 people. Everyone agreed; end of the story.

Then William Mulholland, head of the LA water district, proposed building the Los Angeles Aqueduct, a 233-mile-long system to move water from Owens Valley to the San Fernando Valley. Today, the Los Angeles Aqueduct supplies a lot of LA's water.

In Las Vegas, there was a study concerning the cost of running a water pipe from Las Vegas to northern Nevada, where there is sufficient water. The estimated cost was $2B. It is comparatively inexpensive because almost all the land is federally owned. However, whether the cost is $2B, $4B, or $20B does not matter. The Resorts World Casino alone cost over $7B to build. No one will shut down a trillion-dollar business (Las Vegas) for a few billion dollars.

One of our clients works for the local water company on the current water supply. He and I talked about water usage in the valley, and I learned that about 80% of the total water usage is for irrigation in private homes, mostly watering grass. When the water situation gets sufficiently dire, the water company will increase prices, and the lawns will disappear. Grass in the Mojave Desert makes no sense.

It is not just my opinion. There are a lot of major projects under construction in Las Vegas; the current total is over $22B. All these companies did their homework on the water supply and other potential issues before committing money. I trust their research.

In summary, I am not worried about the short or long-term water supply of Las Vegas.