Phaster and sdr:
Water is indeed a big issue here, and the drought throughout the western states, hopefully temporary, needs to be addressed. Fortunately, solutions exist, especially using different pricing mechanisms.
My water & sewer bill is about a quarter of what I paid in San Diego (for two people, no lawn in either place). So raise the price per gallon.
This will also discourage the hay and alfalfa growing in the area wherein massive sprinkler systems on big wheels throw out water at 4:00 in the heat of the afternoon to acres of farmland growing hay and alfalfa. Get the feed for our horses and cattle from the Midwest where rainfall is more abundant. BTW, the growing of those crops may explain the rediculous claim by the Washington Post and Guardian that our per capita water consumption is twice that of other areas.
Take agriculture watering out of the calculation and our water consumption per capita would collapse. I believe new housing already cannot have lawns, so artificial turf or desert landscaping is the norm. Lots of people have replaced grass with artificial turf, and more may do so with proper pricing.