Most places in the west, the water used for 'municipal' stuff is a small fraction of the total.
For instance where I live east of the Cascades, in the dry part of Oregon, only like 10% of the water used goes to the cities.
https://www.centraloregonlandwatch.org/update/2021/5/5/droug...
Street trees are hugely beneficial and if you want to cut something (ha ha), you want to look at things like lawns or golf courses.