The plague of drought has captured Texas headlines. On the heels of withering droughts in 2006 and 2009, today nearly the entire state endures drought conditions. Reservoirs are running low, and some near-dry, as water levels in rivers and aquifers continue to plummet. All of this is occurring less than a year after higher than normal precipitation levels in 2010.

Some communities, such as the city of Llano, face the ominous prospect of having no water before summer's end. Other towns, from Midland to Fredericksburg to The Woodlands, have implemented watering restrictions to conserve their resources. Meanwhile, wildfires throughout the state — including within the Austin and Houston metropolitan areas - serve as stark reminders of the perils of drought.

Historically, this year's drought is the state's third worst since official records began in 1895. The insult to this injury lies in the possibility that this drought may not only get worse, but could get more severe than the worst drought of record during the 1950s.

Scientific studies of tree-ring records indicate the presence of historic megadroughts of a magnitude worse than the 1950s drought. In medieval times, the area that was to become Texas endured several 20-year to 40-year megadroughts throughout the 1100s and 1200s. Another megadrought struck during the last half of the 16th century. Scientists have also uncovered evidence of subsequent severe droughts occurring around the times of the Revolutionary War and the Civil War.

Texas has changed since these megadroughts. Texans built reservoirs and tapped into aquifers for water during dry years. Despite these and other water supply developments, drought remains an economically expensive natural disaster. The droughts of 2006 and 2009 respectively wreaked $4.1 billion and $3.8 billion in agricultural damage. This year's losses already total more than $1 billion and are expected to climb. Some experts predict that this drought could cost Texas businesses as much as $9.1 billion.

Looking forward, the ever-persistent threat of drought coupled with the absence of key pieces to our long-term water supply infrastructure could be the Achilles' heel of the Texas economic miracle. State water planners predict that in less than 50 years, 85 percent of Texans may not have enough water. Throw in the onset of a megadrought, and our prospects look dim. Business, industry and communities cannot grow or exist without reliable water resources. The bounties of population and economic growth will diminish if we fail to secure the resources necessary for their sustainability. In fact, the Texas Water Development Board notes that failure to meet the state's water supply needs in drought conditions could cost Texas businesses nearly $100 billion by year 2060.

This current drought should bring our long-term water policy into sharper focus. To our credit, Texas is renowned for its strides in comprehensive, statewide water planning. The perfect plan fails, however, absent execution.

Significant water supply planning strategies designed to protect our growing economy and communities from drought have not been implemented. Fourteen major reservoir sites designated by the Legislature in 2007 remain undeveloped due to lack of funding and federal regulatory interference. Regulatory hurdles preclude our ability to transfer water from bountiful rivers to areas in need. We need to take greater strides toward implementing water-smart conservation practices and technologies, including reuse and desalination.

Underlying each of these water supply strategies is the need for a consistent, reliable funding source for our water plan. Reservoirs, pipelines and water desalination plants are expensive. Texas will need to invest $30 billion or more on water supply projects like these if we are to meet our needs in the coming decades. As the strings to our state's budget grow tighter, we may need to consider ways to raise revenues to finance these projects.

As a fiscal conservative, I am reluctant to suggest the need for new state revenues or financing mechanisms. Fiscal conservatism includes making wise investments to protect future prosperity: In the long-run we will get what we pay for. Towards that end, it is crucial that we frame this discussion in the context of drought - while mindful of the lessons of megadroughts - and its economic implications.

The benefits of committing to investing in long-term water supply solutions will outweigh the costs of drought. Droughts are native to Texas, and our growth requires that we be prepared to withstand long- and short-term droughts. While we may hope, pray, and forecast for the best of rainfalls, prudence necessitates that we plan, build and find a way to pay for the worst of droughts.

Callegari, a Republican, has represented state House District 132, which includes Katy and the west Harris County area, since 2000. He has over 30 years experience in the water industry.