Carbon tax (or a similar, more general environmental impact tax) would sort thing out in no time.
It wouldn't matter if someone uses water to raise almonds in the middle of the desert, but it should have its env. impact priced in.
Similarly, it's absolutely ridiculous that large states can't plan ahead for ~20-50 years and instead of building efficient power plants we're stuck with windmills and solar and batteries as the "green" option.