modern transportation seems to be a bad idea on a community/ society level.

I look at historical water rights and current property rights as very similar issues (water rights could be seen as property rights). When society grows and better transportation is needed, land owners are forced to sell their land to make room for larger roads, new on and off-ramps, freeways, etc. The sale is at market rates. Some land owners feel fine with that price. Some fight and kick and scream and feel harmed when they lose a house or a business that has sentimental value.

As society grows and needs more water, water rights should be purchased from those holding historical water rights at market rates. Those losing water rights will have the option to use the money from the sale of their water rights to buy alfalfa and other crops to maintain livestock, etc. Some will need to change to a new crop, new livestock, new business that uses less water or just retire. Some will be angry, kick, scream, fight... Some will be happy. All should be compensated market rates for their loss.

With the purchase of land for growing transportation needs and water for growing population needs society and the community are helped at the discomfort of a few, who are compensated for their loss.

The community and society as it grows needs more transportation and more water. Theoretically, a farmer could be paid for their water rights and turn around and pay market rates to continue using the same amount of water. This cost would quickly put most out of business. Just the way my wife for years decided to have a garden and pay for the water to grow plants at a cost much higher than going to the store or farmer's market or at least similar when water, fertilizer, etc. are considered. Add in the cost of time and much less expensive to buy all produce from a farmers market when compared to growing it ourselves. My wife enjoyed gardening, so we had a large, productive garden for years and enjoyed fresh picked produce all summer and into the fall. We stopped a few years ago and save money on water and time spent gardening is now used in other activities.