Will Cape Town run out of water?

The central economic problem writ large: scarcity and choice. In this case, it's the iconic city of Cape Town, a remarkable place, which is facing an extreme water shortage.

Low rainfall and a rising population have combined such that some people think that it could have run out of water by March. As a result, it has had to invest in desalination plants, and try to encourage consumers to ration their water use, such that "the visiting Indian cricket team were told to limit their post-match showers to two minutes." 

The solution? Free marketeers would suggest that better use of price is the solution.