The real solution to the water crisis is to start by admitting that water is a scarce resource in the region that needs to be rationed somehow and then start working on an equitable plan for rationing.

While water is necessary for life, a lot of the water usage in a suburban lifestyle is just plain wasted. To give an idea, when I worked at a water treatment plant, I got to see just how different the water consumption rates were between winter and summer--winter water usage was roughly half that of summer.

So a simple starting point for water rationing is... ban lawns and watering lawns (if you don't like such bans, then I'd alternatively suggest changing water rates so that it's cost-exorbitant to water a lawn). If you want to live in a desert, you need to landscape your house appropriately for living in a desert.

The next contentious point will be a readjustment of the water rates for agricultural perspectives. The simple truth of the matter is that residential water usage--especially if you remove lawn care from the equation--is highly recoverable as drinkable water, since almost all of that water goes back down the sewer pipes. Agricultural water usage is generally far less recoverable, especially if you're growing plants for export whose mass is mostly water (which means you are rather literally exporting water).