There are more reactor types than water-cooled reactors, and modern energy plants should use cooling towers even if some water reservoir is available, nuclear or not.
> it is because they are completely uneconomically
This is why private sector cannot provide infrastructure. State is not a company.
Secondary loop can be made closed system. This reduces efficiency, but this could be acceptable considering water scarcity. Of course there would be some leaks etc. so water needs to be resupplied, but in much lesser amounts.
> 2) to cool
Not necessarily true, because primary loop doesn't need to have water (HTG, MSR, LMR reactors). HTG reactor actually doesn't need water at all and can power gas turbine directly. LMR, depending on chosen coolant, can do this as well, though it requires heat exchanger.