Very informative article in the San Jose Mercury News on California droughts past and present. Looks like our more recent ones pale in comparison to those from long ago. Scary to think that couldn't happen now, and nothing says it can't.
"We continue to run California as if the longest drought we are ever going to encounter is about seven years," said Scott Stine, a professor of geography and environmental studies at Cal State East Bay. "We're living in a dream world."
Some comfort can be found in the piece, with most saying our taps won't run dry. Water will just get more expensive.
I don't think they gave enough thought to the effect of limited water supplies on the economy. People who uses large amounts of water for their living won't be able to just find something else to do. I would think the effects of a prolonged drought of decades or more would be catastrophic as far as the economy goes.
Addendum: Actually, re- reading the article, which was also published by the Times- Standard this morning, they do mention that a prolonged drought could have catastrophic economic consequences. Great minds think alike!