California's Crisis Draws Investors

As California struggles through a 4 year drought that has left the state in dire need of better water controls and a more efficient way to supply its residents, many investors are beginning to look for ways to capitalize on the growing demand for companies that can conserve and transport water.

After Governor Jerry Brown declared a state of emergency in January, the state began to focus its efforts on conservation and educating residents on ways to save the precious resource. Since then, there has been a push to install water meters that measure the amount of water a particular residence is using in many communities. Companies that manufacture and install water meters, like

and

, are likely to see a jump in their sales as conservation takes priority.

While the environmental effects and sky-high costs of desalination have kept California from investing heavily in making sea water drinkable, many believe the state will eventually resort to more reliance on plants that do just that. For that reason, long term investment in companies like

, which manufacture the equipment needed for desalination, could be a smart play.

Some investors are

and looking to alternative energy companies as the drought forces California to rely less and less on hydropower. Many see solar as a great alternative, especially in California where sunshine is plentiful. For that reason, investors are looking to

SolarCity Corp

, the state's largest rooftop solar panel installer.