I have really never lived anywhere that could restrict your water usage. I've always had my own well water.
Let me tell you about Denver, CO...frequent watering restrictions due low snow pack in the mountains. A couple of years ago, the water department pleaded for us to reduce consumption by rationing...we did significantly.....the next move by the water department was not to reduce staff or expenses, but to increase our rates per gallon consumed since demand and revenue had dropped.
They apparently were just practicing in order to take over the coming Obama health care program.