Truck in seawater to the desert, electrolyze it and then truck it back to civilization; sort of like marching camels to the oasis, filling up their water tanks and marching them back to the next water hole?
The method isn't that far-fetched; the hurdles are efficiency and scale. But there was recent news (posted here, I'm pretty sure) that focusing the sunlight on the photovoltaics significantly increases their energy conversion efficiency.