California is experiencing a historic drought, and last year, for the first time in history, Gov. Jerry Brown mandated cities to reduce their water consumption by 25 percent. We all had to do our part by curtailing outdoor use of water, taking shorter showers and letting cars go with less frequent washings.

All of these actions were very successful. The cities in the state essentially achieved the 25 percent reduction goal, according to the State Water Resources Control Board’s recent report. Ironically, many communities in the state have seen their water rates increase despite the reduction in water use. At Stanford, for example, our rates just increased 29 percent even as we reduced water use by 25 percent. As a neighbor of mine commented, “Is there anything else that we pay more for when we use less?”

It’s an understatement to say that water pricing is complicated – because it’s a social good and it’s undervalued and tied to outmoded fee structures. It was public policy in the U.S. during the 20th century for federal grants and public works programs to build much of today’s water infrastructure. These and other political choices led to artificially low, subsidized water rates based on water consumption – or even flat rates, regardless of how much water was used.

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