This depends on water being well-priced in California (i.e. not subsidized, reflective of opportunity costs and externalities). I don't know much about water in CA, but is this the case?
Source: Lived in a water district for 7 years with some of the cheapest water in the state (sub $3 a unit) yet a water bill for a family of four with fake grass and small yard of around $180 a month. If we used ZERO water, the bill would have been about $120 in flat fees. We were subsidizing the massive avocado groves and other major agricultural producers in the water district. They brushed off our complaints and the fact that we pointed to neighboring cities with $40 water bills.
The water districts and utilities do most of the price setting, as I understand it. The water districts are largely controlled by farming interests who do not want pricy water.
This info may be out of date, since I work in a very different water market (East Africa), so if someone knows better please correct me.
https://www.economist.com/news/united-states/21647994-why-go...