Algal biorefinery-based integrated industrial ecology has received increased attention as a sustainable way of producing biofuel, food, high value products and feed ingredients in the Southwestern United States (US). However, these regions already face serious freshwater supply issues. Hence, new policies and regulations for water management and use is a high priority for the sustainable development of an algal biofuel sector to meet liquid fuel needs in the US without hampering the regional hydrologic pattern. (C) 2010 Elsevier Ltd. All rights reserved.