I know California already has tons of regulations on water, but there are not enough. Californian citizens, despite the high water bills, still use lots of water. There is a lot less need for it there besides survival. Other places desperately need water to sustain their resource development. The water consumption is not good for the long term.
The drought has had the biggest impact on the agriculture industry in California. According to the California Department of Food and Agriculture, California was the number one state in cash farm receipts with 11.3% of the US total in 2012. The CDFA also reported that California agriculture received $42.6 billion in 2012 for their output. With over 400 commodities, California agriculture is a powerhouse that has a lot to lose should an incompetent agency be charged with monitoring water usage. Regulation impacts more than just citizens showers and green lawns. It has a national reaching impact. Thus far the state agriculture has been surprisingly successful in the face of drought and an outside authority would surely pose a threatening obstacle.