LOS ANGELES -- Major Southern California water agencies say desalted water is just too expensive for them to go ahead with plan for a $1.88 billion desalination plant on the coast of Mexico.

Three public agencies and one private company recently completed a feasibility study on the Baja California Desalination Project, a proposed plant that would produce 100 million gallons of desalted water per day from the Pacific Ocean. The co-sponsors launched the study in response to concern over a five-year drought that has sharply reduced existing water supplies in California.

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