Its obviously not as dire (yet) but I think Texas will face something like this in the coming decades. Its the kind of problem that requires people at all levels of society to cooperate and sacrifice - farmers & businesses need to draw less, people need to use less and government needs intelligent and actionable policy, plus big investment into unsexy and invisble infrastructure upgrades - so basically we're screwed.
People use very little water. Most of what is drawn is returned back to the system. By that I mean if you use 20 gallons for a shower 19 is going into the drain to be reused. The only real usage of water is evaporation and that's stuff like growing plants and cooling towers.
Many systems also output reclaimed water; it's clean, but not up to environmental standards for discharge or drinking; typically excess clorination. This is often used for municipal irrigation sometimes toliet flushing, etc; uses where water below drinking standards is fine.
A handful of systems discharge treated water into their reservoirs or into acquifer recharge ponds. But there's an ick factor, even when discharge water is often held to higher standards than drinking water, so it's only done when the situation outweighs the ick.