MSD

It seems to me that it would be ideal to water gardens and lawns with rain, and for properties with a septic system and leaching field to collect rain water and use it in place of greywater for flushing toilets. There would be no net loss or gain of water to the ground with this kind of setup. I'm sure there can be a way to allow rainwater collection in a way that is environmentally sound and economically friendly. Despite my capitalist views, I just don't see public water supply as something that should be anything but a publicly owned and controlled utility.

For Colorado's case, I can see incentives and regulations as a way to balance things; If people collect rainwater and use it for irrigation and greywater, they will take less from municipal water supplies. If excess or purged collected water can be directed back into the water table or fresh water streams/rivers/lakes, there shouldn't be much of a drain on the public supply. Overall, I think that it shows we need to be careful not to overdevelop to the point that infrastructure can't handle it.
The continued Israeli occupation of the Golan Heights is partially rooted in water resources in the region. I have little doubt that this is a significant issue and that water distribution and sharing treaties will necessarily be a significant part of any two-state peace plan.