Social problem
What i see here is a market challenge.
We have a scarce resource that has three use cases:
1, Where we use it to drink and keep ourselves clean
2, Where we use it for irrigation so we can feed ourselves
3, Where we can use it for industrial uses, hosting cat videos and other things
I suspect that we have an inverse incentive.
That the users in use case 1 should only be charged the lowest possible rate - its low on the hierarchy of needs after all.
That the users in use case 2 are also in need of lower rates to avoid inflating the price of 2, which is also low on the hierarchy of needs.
The users in use case 3 are by default the highest in the hierarchy of needs and consequently should pay the most. However, they also use vast quantities and therefore demand low prices or subsidies to 'bring jobs to the area'.
These lower prices or subsidies are paid for either by 1 or 2, either in their water prices or in terms of higher taxation to pay for 3.
So we end up in a perverse situation where the least valuable use case gets a preferential rate vs those of the higher value.
One option is to have a 'left over' model. We calculate the amount of water that's required according to the hierarchy of needs at each level and then what's left is passed up to the next level. If there's none left for cat videos, that's decision made. Of course the cat video folks can go talk to the water management companies and ask for more water to be created somehow, but this should have no impact on the current application of other use cases.
Yes, we'd need to have some sort of hierarchy of importance of cat videos vs farming, but that might be a useful exercise in public education. Most people are concerned with current, small, but noisy problems, rather than realising how lucky they are and how good things are.