of course it does.
Controlling expansion is key in most cities.
The city planning office must approve construction.
(or some part of the government has to approve it)
With that it would be natural for the party wishing to construct to
detail how they will ensure the water they need.
Many cities are restrictive as to how much construction they will allow.
There are already recently constructed houses in near PHeonix that presently
does not have water.
They have been cut off by the city.
This is due to a disagreement on taxes, city zones and a few other things.
That community must now pay to have tank trucks come by, and a tank truck
can haul a lot of water, but when you must supply it to a whole community
a tankers worth does not last that long.