The Wall Street Journal last week highlighted the growing role that water shortages are playing in the decision about building power plants. A lack of water in 2001 reduced energy in Brazil, which relies on hyrdopower, questioning its reliance on water for such a high proportion of its energy needs. But its not just dams. Water is necessary to generate power coal and nuclear facilities. In the US, water use will become ever more contentious, especially as the west has turned more arid.
A shortage of water could reduce economic activity in a number of areas. Reuters puts together a short synopsis.