Additionally, due to the ongoing drought conditions blanketing the West, some states are increasing spending on new projects. For instance, Californian voters approved a $7.2 billion bond initiative to fund water projects, CNBC reports.

Specifically, the sale of water bonds could support projects including, $2.7 billion for new water storage projects for surface and groundwater, $725 million for water recycling, $810 for regional water security and drought preparedness, $520 for safe drinking water, $1.5 billion for streams and watershed protection, $395 million for flood control and $900 million for groundwater cleanup.

Voters in Texas, which is starting to see a drought of its own, have already approved a $2 billion water fund in 2013.

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For more information on the water sector, visit our water category.

Max Chen contributed to this article.