On Monday, California lawmakers advanced a bill that would prohibit hedge funds and other institutional investors from buying and selling agricultural water resources for financial gain. Under the measure, which passed the State Assembly by a 46 to 17 vote, speculation or profiteering by investment funds in the sale, transfer, or lease of water rights on agricultural land would be considered a waste or unreasonable use of water.
The measure still needs to be passed by the California Senate and signed by Governor Gavin Newsom before it becomes law.
Western Growers Association opposes the bill and argues that private capital can help address water scarcity issues in California.
