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Keeping up with the Joneses' drought-friendly yard boosted MWD's tab for rebates

When it came down to it, the number crunchers at the Metropolitan Water District of Southern California knew they saved a lot more water for every dollar spent subsidizing low-flush toilets than drought-friendly lawns.

But there was one thing the MWD planners didn't bank on when they threw an unprecedented $340 million into persuading residents to tear out their lawns: The value of one-upping your neighbor.

They said it contributed to a rush of rebate sign-ups that, in a matter of weeks, exhausted all the turf removal funds for the rest of the year — and provided an unexpected lesson in social engineering.