It seems as though the rich can do wahtever they want. As everyone else tightens their belts, the city of Beverly Hills was fined for breaking water restriction regulations. And there's really no reason for them to stop either. The fine is a whopping 61K.
Of course, is residential consumption really the problem? In the grand scheme of things yes, but not to the extent the likes of agriculture siphons off water to produce produce.
If you want to blame water over usage then blame almonds. Yes, almonds, those nasty nuts that suck water like it was free....oh wait, the price farmers pay for water is practically that....