Earlier quoted context omitted.
Long, Long before there was any shortage of drinking water, the various water authorities would simply increase the prices of water to levels which reduce residential usage. The problem in California isn't lack of water for individual use (for the most part, there are a few small communities that are having to truck in water), it's the impact on Agriculture, which is hugely important to the economy of California, and…
On every visit to the US (I'm from Europe), I find it amazing how much water gets wasted. Monster-flush toilets, vertical-axis washing machines, and the most egregious offender: hotel shower. The first time I saw those, it took a while before I realized you just can't limit the flow of water, by design.
Last year California became the first state to require re-fitting all existing structures with low-flow systems: http://www.huffingtonpost.com/2013/08/23/low-flow-toilets-re...