California "water bank" in works amid drought California's state government is forming a "water bank" to buy water for local water agencies at risk of shortages next year should a current drought persist, Gov. Arnold Schwarzenegger said on Thursday. Schwarzenegger in June declared the most populous U.S. state to officially be in drought and declared nine counties in its farm-r ich Central Valley to be in a state of emergency because water supplies were so low after two years of below-average rainfall. California's water shortages have been compounded by a federal court order to limit pumping water from the state's San Joaquin-Sacramento River Delta to protect a species of fish....