As California's drought continues to worsen, the state's 500-plus local governments face a twofold challenge: complying with state-mandated reductions in urban water use while at the same time planning for long-term development. While the state's housing needs are manifest – 220,000 units per year just to keep up with latent demand – the long-term water supplies required to supply new development and redevelopment have become less certain thanks to the drought. 

In the wake of Gov. Jerry Brown's recent executive order, many districts are imposing cutbacks on institutional users, such as park and school districts, and on homeowners collectively. But unlike the 1990s, only a few communities appear to be placing moratoria on new development as result of the drought. But experts predict that further water conservation measures – including more water-efficient new residences – could take the pressure off of development moratoria in the future.

The San Jose Water Company is one of the largest water providers at the high end of the reduction scale. It must cut 30 percent. That district is allocating thirteen 780-gallon units of water per home – as compared to the 2013 average of 19 units – regardless of a home's size. Homeowners will pay penalties for usage above their allocated units. Bakersfield is restricting outdoor water use to three days a week.