It can fill reservoirs, of course, but the real problem is the ground in desert areas tends to be hard and not very absorbent. This means the water will flow off without much absorption, especially when it come so fast. The water will rush into arroyos, creek beds, and other low spots, and eventually into the rivers. There could be massive erosion and damage to bridges, roads, and homes.
The basic short answer is too much water in too short of a time can be very dangerous.
If they can find a place to put it.
Having enough water isn’t really about digging e big enough hole to store it in, it’s about having a healthy weather cycle that stores water in snow and then delivers it in rivers as it melts. Any time the population grows outside of the weather cycle’s ability to provide things go bad. Unfortunately we can’t reservoir our way out of a drought, it’s at best a temporary solution.
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