Laws create black markets and prices skyrocket. Once politicians and lawyers get out of the way, ecologists and livestock owners have common interests. Other companies, insurance, stock and bond holders, groups and individuals will get the hint and not want to risk arbitration, loss of good will, etc. A classic example was napalm and Dow Chemical during the Vietnam War. Dow got the message loud and clear.
Water use can operate on private property principles.
Users should pay the full cost of water, instead of subsidized political pork boondoggles. We must develop water innovations such as recycling, sea water conversion, icebergs, etc that are ecologically safe. This will encourage productive use of less water, relocation to areas with more water, or cancellation of wasteful projects. Deregulation and privatization of water will reduce conflicts and alienation now caused by politics. Bureaucracies will be replaced with efficient use, and pricing based on supply and demand.