Yes, but potable (drinkable) water is another story in the Southwest. A critical water shortage is definetly on the horizon in New Mexico.
Most of that water isn't usable. Even ground water isn't all usable. When we extract water from an aquifer, we have to be careful not to take too much, lest the aquifer subside, and lose capacity. Once subsidance occurs, the lost capacity is never regained.
Alternatives to using fresh water include desalination (almost competitive with natural supplies, and nuclear energy would make it more so), and water recycling.
Water recycling is extremely doable, except for the "YUK" factor. Los Angeles takes in about 600 million gallons of potable water per day (MGD), and dumps about 400 MGD of sewage. Recycle that sewage (which is, ironically, about 99-44/100% pure water), and L.A. cuts its water damand by 66%!
Alternatively, quit subsidizing rice growing in the state. Charge something closer to free-market prices for water, and farmers will cut back. Right now, because water costs them so little (about $15 an acre-foot, compared with about $100 for municipal water purchases), farmers waste enough to drench Los Angeles.