There's also plenty of water available in the US West if there wasn't so much water-intensive agriculture in arid regions (Yuma, Imperial Valley, etc), which uses 80% of the river.
Source: http://www.ppic.org/content/pubs/report/R_211EHChapter2R.pdf
I'm ignorant about the topic, but is there produce that can only be grown in those areas and not in other parts in the US or even Mexico, or is the concentration of agriculture there mainly due to increasing returns?
Sounds like a root cause to me. Make it more expensive and food prices would rise, and we could resume doing things like growing greenhouse vegetables in Massachusetts, etc.