A new economic analysis by UC professors shows the high cost of inaction on California’s perpetual water supply challenges. It estimates that the state could lose enough water each year to supply up to 9 million households — with economic losses totaling between $3.4 and $14.5 billion per year, depending on the severity of the scenario. The study, “Inaction’s Economic Cost for California’s Water Supply Challenges,” builds on prior research showing that California’s total water supply is on track to shrink by 12–25% by 2050, a loss of up to 9 million acre-feet per year, equivalent to one or two Lake Shastas. The new report emphasizes that without coordinated state action, these reductions could result in 3 million acres of fallowed farmland, 67,000 lost jobs, and lasting damage to California’s agricultural and rural communities.