People are pretty stupid in general, and it's impossible to aggregate preferences well, so instead of conservation, or a cap and trade system for carbon emissions, we should just cause lots of problems and then try lots of geoengineering to fix those problems. Pipelines are a good place to start. Specifically, let's build one to move water from the Missouri River to Denver. Zero unintended consequences, guaranteed!
If you want a nice economics lesson from this, it's that you people should index more of their contracts. More financial stuff should be tied to inflation rates, and when you sign your state up to divide water with six others for the rest of civilization, you should probably talk in terms of percentage of million acre feet available over some moving average window, not absolute acre feet.