For the most obvious - Once you're off a municipal water supply (which of course, has to have an adequate source of water in the region), available water resources/aquifers are often very limited and minimum lot sizes have to be large because the land can't support higher density housing.
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If you build anything even approaching "normal" suburban SFH housing, you're just going to have all the wells you'll have to sink run dry in a few months and the properties will be uninhabitable. Seeing a 2 acre minimum lot size isn't necessarily a "keep the poor people out" thing.
To be clear, I am mostly not referring to the cities mentioned in this article, but housing development in smaller mountain towns and the rural/semi-rural areas up in the mountains.