It has heavily under utilized land, abundance of insolation and plenty of water that could be desalinated
If we grew crops in these areas, then both food and water would be a function of energy.
Sure you can dump additives in the ground and boost this years crop but that isn't going to create long term healthy soil which can support farming. Fertilizers are just another dependency on fossil fuels.
Water is certainly a part of terraforming a desert, but only a part of it.
Southern California is one such place where the desert meets the sea. It is not underutilized, but it is undergoing a massive drought.
The idea that farmers' water rights are inalienable seems absurd to me. A state can be in a drought but farmers needn't curb their usage at all?
If each suburban plot of land in California hypothetically came with a guarantee of 100k gallons of water a month, there would be no doubt that this would be cut immediately when a drought hit. It's only farmers' lobbying power that stops their water rights from being restructured wholesale.
With that said, I do think agriculture rightfully gets a lot of water allocated. Much of it seems wasted, though.
The free market had its say when these water rights were sold, taking it back from them with eminent domain so we can charge more is not the free market.
I suggest you watch this very informative talk by the water board director to the MIT alumni club last year to help clarify your POV: http://m.youtube.com/watch?v=rShYQVZvX-k
http://www.cnbc.com/2015/05/28/west-coast-drought-why-califo...
Doesn't look like a free market to me.