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Water firm Acosol serves 11 towns in the Costa del Sol and has proposed pipeline improvements valued at £260million after searing heat in Spain saw reservoirs dry up.
Many areas of Spain have been heavily affected by a long-lasting drought, which has pushed local authorities to ration water usage.
Reservoirs serving six million people have been at less than 16 percent of their capacity, raising tensions between farmers and Spain's tourism industry.
Olive oil's rising prices: Drought in Spain and cutting of olive trees in Gaza are contributing to the global price rise. Beyond the economics, though, it is the story of the olive farmer in the West Bank that is most poignant. For many of them olive oil harvesting is the only source of income and a bond with their antiquity.
A state of emergency has been declared in Catalonia due to the impacts of drought. Read more here. More than six million residents could be affected by the drought being experienced in Catalonia.