Despite its name, the All-American Canal has been leaking water to the Mexican side of the desert border for more than 60 years, nourishing alfalfa, onion and cotton crops that might otherwise wither. Now the U.S. government is preparing to line the earthen channel with concrete. Mexican farmers' loss will be California's gain: Scarce water that will no longer be able to seep away instead will help flush toilets and water lawns more than 100 miles west in San Diego. And that would affect thousands of families whose fields cover thousands of acres around Mexicali, an industrial city of 800,000...