Yes, in a way. They live within the bounds of a water district, which itself has water rights. These districts limit use (or the growth in use) by passing rul

Yes, in a way. They live within the bounds of a water district, which itself has water rights. These districts limit use (or the growth in use) by passing rules on the use (limiting the watering of grass, for example), or (fairly often in some places) limiting new service hookups. They won't let you connect if they don't think they can secure the supply long term.