PERRIS, Calif. — As California faces one of its worst droughts in two decades, building projects are being curtailed for the first time under state law by the inability of developers to find long-term water supplies.

Water authorities and other government agencies scattered throughout the state, including here in sprawling Riverside County, east of Los Angeles, have begun denying, delaying or challenging authorization for dozens of housing tracts and other developments under a state law that requires a 20-year water supply as a condition for building…

“Businesses are telling us that they can’t get things done because of water,” Gov. Arnold Schwarzenegger, a Republican, said in a telephone interview.

http://www.nytimes.com/slideshow/2008/06/07/us/0607-DROUGHT_index.html

http://www.nytimes.com/2008/06/07/us/07drought.html?_r=1&hp=&adxnnl=1&oref=slogin&adxnnlx=1212825663-GXHJk8ybXGdeLgU90wS1aQ

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