Earlier quoted context omitted.
They're taking raw untreated river/lake/aquifer water, purifying it to an incredible degree for the fab. When they use the water it gets cleaned again. Now that water can either be returned to the river/lake/aquifer or if you clean it sufficiently well it can go straight into municipal drinking water supplies. That's how this fresh water comes out of nowhere.
That doesn't seem right. As far as I know, rivers/lakes/aquifers are pretty much the definition of fresh water.
We also, unlike the CA Central Valley or the Midwest who are apparently cool with depleting their resources as fast as humanly possible, are acutely aware of our groundwater supply constraints, given that we live in a desert, and practice a lot of aquifer recharge and management.
Intel cleans it, uses it, and dumps it into aquifer recharge, which cleans it even further.