We have the same problem in my medium-sized California city - we have been under strict water restrictions for years now due to a never-ending, “ongoing drought” - the the point where we have “water vans” going around looking to see if people are watering their yards when they’re not supposed to be. We’ve been under enormous pressure to “conserve” water - tear out our lawns, get rid of bathtubs, get rid of our swimming pools, not wash our cars. Our aged electric grid is also under enormous strain and is often at capacity, especially during heat waves - I get notices from my city during the day not to run large appliances or plug in EVs.
Yet, we are also under state mandate to built tens of thousands of new apartments in each city - these monster buildings are going up on the edges of my town - guess they don’t need water or electricty...
The latest local kerfluffle comes from a Utah real estate development company that wants to build 80 "town homes" on a plot of land adjacent to Ammon Park. The developer is very clear that these will never be sold. Rentals only. Pocatello city council is dominated by Democrats with questionable morals and financial motives. I don't expect the wailing from the citizens will have any effect on that development going forward.