There’s no way to no for sure, but Judith Curry examines the case and finds it flimsy.
It’s very easy to imagine an advocate – on either side – using this event to fear monger – either about global warming or government intervention. So the burden of proof is high.
I briefly entered into the World of Water a few years ago, when I looked at water-saving technologies for a large landscaping company. What became clear immediately is that we’re all paying a lot less for water than it actually costs. Many farmers, in particular, have access to heavily subsidized water. But residential and commercial consumers also get their water at a reduced rate.
If the government is fixing prices, then it’s going to be extremely difficult to get an accurate read on supply and demand. And fixing prices is one easy way to generate shortages.