Sky high water prices pit neighbors in bidding war for resources

Dried and cracked earth is visible on an unplanted field at a farm on April 29, 2014 near Mendota, California. As the California drought continues, Central California farmers are hiring well drillers to seek water underground for their crops after the U.S. Bureau of Reclamation stopped providing Central Valley farmers with any water from the federally run system of reservoirs and canals fed by mountain runoff.

Farmers and cities around the state turn to an informal water market where surplus supplies are traded to the highest bidder.

During this period of extreme drought, there's a lot of competition for water. Farmers and city water agencies around the state are struggling with a fraction of the resources they normally get from state and federal water projects.

So where do they turn to support thirsty crops and growing populations?

Many turn to an informal water market where individuals, small companies and water agencies trade off extra resources to the highest bidder.

Reporter Lisa Krieger wrote about the pro's and cons of this trade for the San Jose Mercury News.