Abstract
The debate over how to address California’s future water needs has generally split people into two main camps: those that think the state should move forward with new supply projects, including surface storage (dams) and desalination and those that believe the state should invest in conservation and efficiency measures first before we consider any other alternatives. State policymakers remain convinced of the need for new water supplies but are unsure of how to proceed given budget constraints related to the economic downturn. This thesis will analyze the existing body of economic and cost-effectiveness analysis for the three leading alternatives: water use efficiency, seawater desalination and surface storage. After evaluating the best available data on each alternative and case studies, I found that efficiency measures and surface storage are more cost-effective than desalination proposals which remain expensive relative to other alternatives.