Millennium Drought, Murray-Darling Basin (1997-2009)
Australia's worst drought on record emptied the Murray-Darling system's reservoirs. Cities like Brisbane came within months of running dry, and the federal government capped water diversions and bought back irrigation rights.
Agricultural output fell sharply, cities built desalination plants, and water prices spiked.
Australia permanently restructured its water rights system with binding caps and tradeable entitlements.
A real-world example of how a river economy adapts to permanent drying, and a model for the structural changes the Colorado River system may need.
