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James, I think you are pointing are two quite different, although interrelated, issues here: planetary boundaries and water pricing vs. rationing.

Adressing Johan Rockström's global boundaries framework will require much more than ecosystem services pricing, I am afraid. I discussed this issue on a recent CPWF Blogpost entitled "Looking towards the future we want: Setting the boundaries", where I suggested that a sensible approach would consist of combining the planetary boundaries concept with rights-based approaches as a think piece by Oxfam has done before Rio+20.

On water pricing vs. rationing I can't agree more with Aditi, since the inadequacy of water pricing has been not only demonstrated in the developing world, but also in modern agricultures like France. Indeed the longstanding experience of Southwestern France has shown that the most effective water demand management for agriculture had to rely upon both water pricing and rationing, as documented by a paper from H. Tardieu & B. Préfol published in 2002. See also a review made in 2007 by François Molle on this topic.