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Hello and welcome to another episode of the Oddlots podcast. I'm Joe Weisenthal and I'm Tracy Alloy.

Tracy Arizona water. I'm like, I'm really fascinated by this topic and I also have a really hard time wrapping my head around it.

We sort of hear different things. So just to lay the groundwork here or the ground water.

We have interviewed a land broker in Arizona and we have also interviewed an alfalfa farmer.

Water has come up every time and we sort of hear different things from those two state holders.

I remember the farmer was sort of blaming the property developers for water shortages and then the property developers are actually agriculture uses the majority of water in the state.

At the same time you have concerns over water availability and we saw some news on that front recently.

So at the beginning of the month, I believe the governor of Arizona announced this plan to sort of constrain the amount of new development that will be allowed around the Phoenix area, which is of course one of the fastest growing areas.

And as you mentioned, like the developers will say, oh, we have plenty of room to add more homes because the farmers are taking up 80% of the water that we have at the desert and the farmers say, well, there wasn't really a problem with water until everyone started moving to our state.

I'm imagining that spider man meme of everyone pointing fingers at each other, but I think the big difference and what's happening now is that we are starting to see water shortages or constraints affect development decisions.

Right. So then the big question is like, okay, so Arizona and some of these other Southwestern states that in part get their water from the Colorado River all have to conserve water to somewhat to some extent.

There's been this mega drought in the Southwest for I think like 25 years now, some of the underground aquifers they're depleting at some pace, the water from the rivers is lower than it used to be.

So and then and we hadn't even, you know, we're talking about housing versus agriculture. There's also a lot of industry industry and so we sort of have to get a sense. I think of the big picture of like, frankly, who's going to lose out who is going to who has water today that won't have access to it in the future.

Right. And how do you make those decisions? How do you decide what to prioritize?

Right. Because with all utilities, it's never like a pure market. There's not just like, I don't at least I don't think you know, it's like when you like try to wrap your head around like how the Texas grid works. You know, it's not like there's like some price of electricity and who pays the most.

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