Water is one of the most under appreciated resource. Except in California where a water drought emergency has been declared. The state is considering mandatory water rationing and a 10 billion bond pack for water infrastructure improvements.

Reuters covers details.

SAN FRANCISCO, Feb 27 (Reuters) - California Governor Arnold Schwarzenegger on Friday declared a state emergency due to drought and said he would consider mandatory water rationing in the face of nearly $3 billion in economic losses from below-normal rainfall this year.

As many as 95,000 agricultural jobs will be lost, communities will be devastated and some growers in the most economically productive farm state simply are not able to plant, state officials said, calling the current drought the most expensive ever.

California is known as the sunshine state. Now it may be known as drought state.

"We're going to have droughts. That's a fact of life. They may be worse in the future," state water chief Lester Snow told reporters on a conference call.