I have brought up these ideas before, not one single cut is going to fix this problem, here are my suggestions:
1. more wastewater recycling needs to be done, no reason each house can't have a small wastewater recycling (maybe just grey water). I know some water districts don't want this, they want that water to resell.
2. Reduce the turn of the fields in the Southwest, from 6 turns a year to 4, that is a 1/3 savings. Also find better ways to irrigate, hard to believe flooding the fields is the most efficient way?
3. Urban expansion/growth is slowing down in the west, especially in California. I saw a study recently, that in Southern California, they plan no growth in population from 2030 to 2050.
4. And find a way to share more water throughout North American, absolutely no reason we can't have water pipes transferring water from one part of the country to the next, at the headwaters??? Why not bring some Canada water down to headwaters of the Colorado and use it as needed?
5. Desalination
At the end of the day, all of this cost money and this is pretty much the one thing stopping this from happening. If we can pump gasoline across the west, we certainly can do this with water.
Just a few comments from a lowly water engineer...
1. Yes to wastewater recycling. It doesn't make as much sense for a locked in basin like the Great Basin where there are no flows to the ocean since you wind up robbing water from places like the Great Salt Lake that need it, though you may be able to reduce inter basin transfers of water doing so. You do wind up reducing in stream withdrawals, which I think is a plus, allowing higher quality water to remain in the environment. The water districts don't really care about recycling of wastewater in Utah since they continue to own that water if it is recycled outside of the user that originally purchased the water. They just look at it as a water efficiency project and they have plenty of demand for the water that is reduced.
2. A shift to drip irrigation for alfalfa would reduce water withdrawals massively. You can increase crop yield while reducing water usage by 25-40%. However, there is a certain Utah politician who believes that agriculture is a super efficient use of water since the excess water applied to fields simply returns to the environment as a return flow, which is not true since a significant portion winds up evaporating and transpiring, making it a net reduction in water in the local system. You should always remember that every time you move water, you lose water in some way.
3. Urban expansion/growth does not materially impact overall water usage in an area. Taking land away from agriculture and toward urban development will result in net reduction in water consumption per acre as long as the agricultural water is not transferred elsewhere (which it nearly always is). More efficient urban development and replacement of old systems with new should also improve water use efficiency. In Moab, they grew their population by 40% (and hotel base by even more) from 1990 to 2000 but water consumption and wastewater production was flat due to greater fixture efficiency and the hotel laundry rooms moving to water efficient machines. We will see more of this if someone doesn't get in the way of water efficiency regulations.
4. Moving water is very hard in this area due to the energy associated with pushing water uphill. The Lake Powell pipeline, if it is ever constructed, is intended to deliver water for Page to St. George and would require 5 massive pump stations, each with their own power generation systems. They would try to recover power as it flows back down the hill. This is a major contrast to moving water up and down the coast or down through AZ, which has less topography and is easier to move. Moving Canada water to the Colorado would require massive pump stations, elevation gain, and power, not to mention anything about the difficulty in easements, pipeline construction in challenging areas, and figuring out how to get Canadian farmers to allow a taking of their water.
5. This is very promising right now. Development in desalination technology is likely to reduce the overall energy requirements for desalination facilities. All coastal water should come from desalination plants. Power is still the big driver. As others noted, San Diego now has excess water, allowing them to sell to upstream users to offset costs of desalination. We will all wind up sharing these costs.
In my mind, the money needs to be spent by all basin users to provide desalination and irrigation improvements to reduce overall system viability.