Earlier quoted context omitted.
We need food. We don't need wasteful, water hungry lawns and we can make inefficient toilets and showers a little more water efficient with some cheap mods.
Lawns and toilets are such a tiny part of water usage in California that even if you got rid of all lawns and toilets altogether, it would not make any material difference to the water shortage. All residential usage of all types in CA amounts to ~9% of water usage. Talking about lawns and toilets is a purely theatrical feelgood measure designed to make people think they're pitching in and helping. We need food of so…
The most useless usages of water would naturally disappear if water were sufficiently expensive. A glass of water at $0.30, a washing cycle at $8... so what? Watering some lawn for $30 a day? Ok lawnlords would finally get it.
You could say that at this price, agriculture wouldn't be possible. And, ehm, that's quite an accurate picture of the reality constraints: Given your drought, it's foolish to do so much local agriculture. You may need to do it offshore and import it, probably by ocean cargo. There's a point where petrol is "cheaper" than water, but only the rise of the water market will make the optimal optimizations.