Agricultural biotechnology may lead to the development of new crops that can be grown more cheaply, yield superior products, or utilize less water. General innovations in the management of agricultural operations are likely to become available as well. Simply put, they often are not well-suited to an era when efficient water use and the need to adapt to rapid change are so important. Many state and federal water laws are outdated, and the lack of effective enforcement of some laws creates uncertainty about who is entitled to how much water. The legal system provides few incentives to manage water efficiently, and there often are legal barriers to the establishment of markets for water and water rights.
Irrigated agriculture has the capacity to adapt to the various changes confronting it.
Ease of adaptation will depend in part upon whether changes are made in water policies and institutions.