The solution is to make the industrial system sustainable.
If there was a power crisis, you wouldn't make everyone use pocket calculators instead of computers, you'd figure out how power generation alternatives.
In actual water crises, such as the one in California, limiting and controlling consumption is the response. Obviously, it's always better to come up with an alternative before you reach the crisis. But once you've gotten to the crisis, you're already exhausted all other options and have to be realistic.
At the cost of luxury, economic development and social stability.
It's an emergency option, not a sustainable one.
New generation and leaps and conservation technology allow for the same options while improving future sustainability.