Absolutely! Fresh water resources remains the most significant challenge we face on Bali going into the future. And as you say, the sickening irony is the ever increasing attempts by the Department of Tourism to increase tourist arrivals on Bali…rather than increasing the quality of tourism. For some unknown reason the simple concept that one tourist who spends an average $300.00 a day is far preferable than ten tourists who spend an average of $30.00 a day is not either understood, or appreciated here in Bali. Those folks who think that more tourists are better should spend some time driving our roads during peak seasons.
Already in several regencies there are bans in place preventing the drilling of new bores or wells for water. The lakes in the north central highlands are well below their normal levels…but this has been going on for quite a number of years…thus the “writing on the wall” has been here for a long time for anyone to read of the eventual water crisis we are heading towards.
The problem here isn't the result of salt water intrusion into to the aquifer, rather, that is the result of a diminishing fresh water supply which is caused by diminishing rain fall averages and ever increasing demands on fresh water. Those increased demands come from a variety of reasons including increased agricultural use of land, population increases, and ever increasing tourist arrivals.