Presented in one long, excellent blog post (do read it), here is a partial response. I’ll note that water policy has long been an area where libertarian insights are hardest to apply. Property rights in water (to the molecules? to a flow? to water of a certain quality? what is the natural unit? …and don’t even get me started on water tables) are more of a fiction than, say, property rights to your toothbrush. That makes administrative law more important, more valuable, and more of a balancing effect for water than for most other sectors of the economy.
If you wish to purge yourself of all libertarian tendencies, just study water law for a few months.
If you wish to increase your libertarian tendencies, study farm policy, corporate welfare, teachers’ unions, or anti-marijuana laws. A stroll by the HUD building isn’t a bad refresher course either.