• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

1

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
EnvironmentCalifornia

California lawmakers urge Justice Department to investigate ‘drought profiteering’ as water prices soar to historic highs

By
Kim Chipman
Kim Chipman
,
Mark Chediak
Mark Chediak
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Kim Chipman
Kim Chipman
,
Mark Chediak
Mark Chediak
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
August 25, 2022, 3:52 PM ET
California drought
California water prices hit an all-time high of $1,233 an acre-foot Wednesday on the Nasdaq Veles California Water Index, which tracks the average price of water-rights transactions in five markets in the state.Justin Sullivan—Getty Images

California lawmakers are ratcheting up calls for “urgent action” by the U.S. Justice Department to investigate potential water crimes as the state battles “dire” supply shortages and drought.

The bipartisan group told U.S. Attorney General Merrick Garland that, along with ongoing concern about possible “drought profiteering” and water theft, worry is building that “fraud and market manipulation” is constraining already severely limited water availability.

“We believe this manipulation is causing water prices to spike, and may soon cause a spike in food prices,” four state lawmakers including Democratic Senator Melissa Hurtado and Republican Assembly Member Suzette Valladares wrote Wednesday in a letter to Garland.

The legislators didn’t identify who might be trying to jack up prices in markets where hedge funds, land owners and government agencies trade rights for water that flows to residential customers, commercial users and agricultural interests. In the letter, they raised concerns that large landowners could be using questionable groundwater data from private consulting firms to manipulate small farmers into selling their land.

The topic has enormous political resonance in a state whose water disputes date to the gold rush of the mid-1800s, especially with the Los Angeles region facing unprecedented supply cuts in the worst drought in the U.S. West in 1,200 years.

California water prices hit an all-time high of $1,233 an acre-foot Wednesday on the Nasdaq Veles California Water Index, which tracks the average price of water-rights transactions in five markets in the state.

More supply cuts are on the way as policymakers struggle to come up with plans to avoid worst-case scenarios for cities, agriculture, industry and wildlife.

The drought also is taking severe toll as the state’s water districts begin building the framework for new underground water usage rules. That effort is a potential boon for water consultancies as local officials try to get a handle on crucial water data needed to gird the regulations.

“California’s water history reminds us that it’s not just investors who are to blame for fraud or market manipulation and that we must consider the role that professional consulting firms play in our water outcomes,” lawmakers including Democrats Dave Cortese and Freddie Rodriguez said in the letter.

The Justice Department didn’t immediately respond to requests for comment.

Three months ago, state senators Hurtado and Cortese sent a letter to the Justice Department calling for an investigation of potential drought profiteering in western states. Their May 17 letter said “hedge funds and monopolistic businesses” are trading water rights in a way that is harmful.

In April, federal prosecutors charged the former manager of a California water district with stealing more than $25 million worth of water over nearly a quarter century by diverting from a leak in a canal in the Central Valley and then selling it.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Authors
By Kim Chipman
See full bioRight Arrow Button Icon
By Mark Chediak
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Environment

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Environment

trump
EnvironmentWhite House
Trump reverses grocery, air conditioning pollution regulations because they’re too woke
By Matthew Daly and The Associated PressMay 21, 2026
16 hours ago
allbirds
AILayoffs
Allbirds’ 600% stock surge says a lot about how ‘AI washing’ became the new ‘greenwashing’
By Suvrat Dhanorkar and The ConversationMay 21, 2026
21 hours ago
electrical transmission lines hang over a housing development on March 24, 2026 in Sylmar, California.
EnergyElectricity
2025 was a turning point for your electricity bill and it’s just getting more expensive from here. It’s not just data centers
By Tristan BoveMay 20, 2026
2 days ago
trump
CommentaryCongress
Milken-Harris Poll: 80% of Americans want AI workforce programs now — and Washington hasn’t delivered
By Karen Kornbluh and Libby RodneyMay 20, 2026
2 days ago
‘This is what the consumer wants’: A new lawsuit about PFAS and other ‘forever chemicals’ is heating up the cookware industry
Big TechLawsuit
‘This is what the consumer wants’: A new lawsuit about PFAS and other ‘forever chemicals’ is heating up the cookware industry
By Catherina GioinoMay 19, 2026
3 days ago
High gas prices are just the beginning: How the Iran war is changing the global energy map
MagazineIran
High gas prices are just the beginning: How the Iran war is changing the global energy map
By Jordan BlumMay 19, 2026
3 days ago

Most Popular

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
2 days ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
19 hours ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
3 days ago
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
Workplace Culture
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
By Sydney LakeMay 20, 2026
2 days ago
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
Conferences
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
By Tristan BoveMay 20, 2026
2 days ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.