Willingness to Pay for Water

In 1931, Los Angeles was willing to pay $8.70 per acre foot of water, about $114.00 in 2011 dollars. Though this was more than the going price for water at the time, households now are willing to pay an average of $40 dollars per month and that number is only rising, particularly as people's standard of living rises and the population increases. As southern Californians continue to thrive in arid conditions, how high will their willingness to pay for water go?