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INTRODUCTION The ocean contains 97 percent of the earths water, the residual 3 percent is fresh water that is relatively hard to access (National Oceanic and Atmospheric Administration 2013). There is a limited amount of this precious liquid that is essential to human life, and currently California is running out of it. California is the nation's most populous state, and debatably the world's eighth largest economy (Ball 2014). California's optimal geography and Mediterranean climate have helped the state become one of the most productive agricultural regions in the world (Department of Water Resource 2014). However, across the state farmers are ripping up the crops that have allowed for the states prosperous growth (Ball 2014). This is due to the fact that California is currently in a severe drought. Last year was the driest year on record, and this year is expected to be even worse (Ball 2014). Without conservation requirements Californias may continue to take this precious resource for granted. Voluntary conservation is not going to work, policy changes are required to solve this issue and end this crisis. Urban conservation practices are necessary. Although the majority of water useage is not in urban areas there is still drastic room for improvement. Too much of urban water use is unessential and unnecessary(Naughton 2014). Agricultural conservation is much more difficult. This is due to the direct correlation between water usage and yield (Department of Water Resources 2014). A decrease in water will typically decrease yield (Department of Water Resources 2014). Urban water use only accounts for about 12 percent of total freshwater withdrawals, whereas agriculture takes up about one third of consumption (Olmstead & Stavi... ...nia’s Water Future My recomended will have a positive impact on California's future. This policy will save California water, and therefore money. The implementation of this policy should be paid for by the money generated from the rate increases. This can be put to pay for the council, set up education programs, and even retrofit homes with low-flow appliances. Conclusions In the words of Olmstead & Stavins (2009) â€Å"using prices to manage water demand is more cost effective than implementing nonprice conservation programs.† Involuntary policy changes must be enacted if Governor Brown wants to see an increase in conservation. Excessive urban water use must be curbed, and through rate changes this can happen. By implementing my proposed policy, California will experience effective conservation while making a revenue to pay for education and the retrofitting of homes.