Climate Politics

California Advances Bill Banning Hedge Fund Water Profiteering

Legislation says investor funds buying or selling water without beneficial use would be considered a waste

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California lawmakers advanced a bill that would prohibit hedge funds and other institutional investors from buying and selling agricultural water resources for financial gain.

Under the measure, which passed the State Assembly by a 46 to 17 vote on Monday afternoon, speculation or profiteering by investment funds in the sale, transfer or lease of water rights on agricultural land would be considered a waste or unreasonable use of water.