Water is one of the most precious natural resources available to mankind. The development of water projects around the world has brought both benefits and ruin to the humanity. Water is the source of conflicts in many parts of the world; different communities fight each other over the control of certain water points. The government has on many occasions found itself drawn in the fight for water resources, especially where one group claims to have full rights of ownership. Because of the exploitation and unfair distribution of water, the government has always come out as the best solution in the development of water projects. If water sources are left in the hands of private developers, it is likely that they will exploit other users through highly expensive selling of water as it is happening in India and Mexico now. The government is the only water developer that can come up with policies and regulations to control proper development of water sources and control the distribution of water amongst those in need. However, this should also be done carefully to avoid displacement of people, like it is happening in China where one million people are likely to be displaced due to the dam construction. As the main developer of water sources, government should take proper steps to avoid displacement of people from their places of residence. However, water projects development needs to be regulated by the government to ensure that aquifers and other water sources are not depleted in the course of water use.
Water subsidies are justified in cases where there is shortage of food production. Naturally, rain water should be sufficient for producing enough food. But because of environmental changes and clearing of forests, most farmers will need to irrigate their land in order to have good harvests. This will definitely increase the costs of producing food from agricultural activities. The government subsidies, thus, serve as the only solution to the agricultural sector as they allow people to produce food on their lands all year round. However, agri-business companies should not be allowed to exploit farmers by buying out their subsidized irrigation water resources, since the government might have spent lots of money for bringing them to those farmers.