Come Monday morning, California lawmakers could be congratulating themselves and Gov. Arnold Schwarzenegger for finally solving an issue that's eluded them for decades: an overhaul of the state's aging water system.

Or, they could be settling in for what one political observer called "a nuclear war." Those are the stakes as the Capitol braces for a drama-filled weekend that may well drag out until the wee hours Sunday.

But with hopes dimming late Friday that Schwarzenegger and legislative leaders would reach a water accord, a string of threatened vetoes from the governor could come as soon as today.

Only a handful of high-priority legislation — whose rejection would cost the state federal stimulus money or damage its still-fragile finances — would be safe, sources in the governor's office said Friday. The vast majority of the 700-plus bills passed this fall will be on the chopping block depending on how water negotiations progress.

"If we're close enough to a water agreement," said Aaron McLear, Schwarzenegger's spokesman, "the governor will weigh every bill on its own merits."

Already Friday, legislative aides were pondering ways they might respond to mass vetoes from Schwarzenegger. Rumors around the Capitol had some Assembly members mentioning impeachment if the worst were to come to pass.

At stake? Civil relations during what's expected to be another bad budget year — already Friday, The state controller's office reported revenues for the past three months were $1.1 billion lower than anticipated. And even the water deal that Schwarzenegger is trying so hard to sell could be at risk.

"After a nuclear war, you have nuclear winter," said Steve Maviglio, a Democratic strategist and former top Assembly aide. "If he does pull the trigger, there's no incentive for cooperation next year, or even to complete a water deal."

Still, Senate President Pro Tem Darrell Steinberg, D-Sacramento, continued to express confidence an agreement would be reached — and that the governor would consider bills fairly. His office played down the idea that Schwarzenegger would face any retribution for making good on his veto threat.

We've mentioned the water issue for a long time, but there is no way to overemphasize one critical point: No matter how many projects you build, you do not get any additional water. The rush about getting water for the West Central Valley is toxic to the state government and to the environment.

The West Central Valley is a relatively dry area. The soil is fairly fertile, but right underneath it lies a layer of clay that sucks water away from the topsoil. That means lots of tilling and lots of water. But in order for these farmers, most of which are big corporate operations, to make any real money, water has to be very, very cheap. Unnaturally cheap.

This, of course, is why there wasn't much agriculture done in the area by the native peoples. It was too inefficient to bring water there. But once we built a slew of pumps, it could be done. The problem is that pumps are expensive, and the farmers of the Western Central Valley don't want to pay for it.

The Westlands Water District has been getting cheap water for a long time, but they are the bottom rung on the water priority list. They are trying to use the crisis in Sacramento and the drought to get around the contracts that they signed last year putting them at a lower priority in exchange for a lower price.

And Arnold is trying to help them to do just that by threatening, intimidating, and generally being a jerk. And of course, Susan Kennedy, his "Democratic" Chief of Staff, is right there with him. Putting a gun to the head of not only the legislature, but some very important measures.