The problem is, we have this expectation that we can live and do things in the desert and everything will just be fine.
_That_ is the problem. The solution is to let prices increase "out of control" until there's response from people to change their habits, or new solutions that were previously unprofitable emerge.
Property taxes that accurately account for the relative value of property with water rights vs those that don’t. Excise taxes on water pumping. Etc.
Las Vegas recycles almost 100% of its indoor water usage and minimizes outdoor usage. They pay you to remove your lawn and almost all of them are gone.
In 5-10 years, if this ends up like many are predicting (and I don’t know if it will or not), you are going to see people by the hundreds or thousands appealing their property tax assessments, saying their land is effectively worthless if water is too expensive or unavailable. They’ll get denied but some of them will contest the denial and file suit. And eventually one wins in court. Then everyone contests and everyone wins. And the only land that can be taxed has water rights. And unless the farmer plans to get his alfalfa to market via helicopter, he’s gonna have to pay the taxes or the roads disappear. He’s proper F’ed.