This is definitely true and something I try to point out to people all the time. The California Water Plan limits residential usage to 10% and it has never utilized more than its allocation (usually closer to 1/4-1/3 of that). So, if every person in every residence and every municipal service were to turn their water usage off for the entire year, it would lower the entire load by about 3-5%.
Meanwhile Ag, industrial and commercial services (water bottling and its ilk) continue to surpass their allocation and continually diminish aquifers and reservoirs, year over year. The whole "Save water, we're in a drought" rhetoric is (generally) a political move from those industries to deflect blame, guilt and responsibility on the populace.
This may not be true for every state, but it most assuredly is the case for California.