That makes a lot more sense for orchards (which are widespread in California) than for grapes, tomatoes, lettuce, etc. (which are also widespread in California).

For the record, I've lived in several places with water shortages since I was a teenager. I believe every one placed restrictions on certain activities (no washing car at home, water lawns only on designated days, no water for ornamental ponds, etc.) instead of simply raising the price of water.

I believe California could fix its problem with a lot less trouble by letting the price of water reflect its supply and demand.