I think it is important not to mix up value and scarcity. They often coincide, but not always. Water is more valuable to me than whisky, yet I pay fractions of a penny for a litre of tap water, and maybe £30 for a litre of decent whisky.
Say I’d decide reflect the true value water has to me in my WTP. Would that lead to a more optimal supply of water? Is there anything wrong with the supply of water as it is?