It absolutely is. I took a California Government class in college that blew my mind about how much of bipartisan political scheming is about water, to this day, because there's so much money in it.
His oft repeated quote was "when politicians agree on something and it stays out of the news, it's usually not in the public interest".
People like to make fun of Las Vegas as a city that wouldn't exist without imported water but most of So Cal wouldn't either. The bad guy in the film Chinatown is loosely based on William Mulholland, the chief engineer for the Los Angeles Department of Water and Power.
http://en.wikipedia.org/wiki/California_Water_Wars