Drought could lead to water rationing in Macau

Macau has been called “Asia’s Las Vegas” because of gambling. But there may be another comparison.

Macau is reportedly struggling with a drought and may begin a rationing program for drinking water in the coming days.

Southern China is suffering through a severe drought, which has impacted water supply in the region and caused salinity levels to rise in the Pear River, a key source for the region's 60 million inhabitants.

Many of Macau's casinos were made aware of the severity of the crisis. Legislators in the former Portuguese colony recently received their first briefings, according to a report in The Standard newspaper.

Water reservoirs in neighboring Zhuhai province are at a 10-year low. If Zhuhai is not able to deliver more water to Macau, then government of the Special Administrative Region may be forced to ration water supplies.

Hong Kong reportedly has deal with the Guangdong province that guarantees region with water supplies in the case of a drought. However, Macau does not have any agreement and contingency plans may be limited.

“The Macau Grand Prix is scheduled for (Thursday), and an international Marathon is scheduled for early December,” Susquehanna gaming analyst Brian McGill told investors. “If the water problem is not resolved, it could have a negative impact on these events and by effect visitation.”