We have homes in both San Luis Obispo and in the Houston, Texas, area. I am on the water board at the Texas location.
There was a mandate in Harris County, Texas, that all municipal water districts had to convert to only surface water use by January 2012 due to subsidence. The individual utility water districts may maintain their current wells for emergency use if they wish. However, they may not use them to furnish water to the district unless the Regional Water Authority is unable to supply said district with enough water. This has not happened since the surface water use went into effect in January 2012, even with the severe drought in the summer of 2012.
Our water is from man-made lakes that are filled by rain, and the level of water in them is down due to annual decreasing rainfall. When the levels are low, recreational use of the lake is restricted. Property owners may not drill their own water wells.
It is not only Texas and California that have water problems.