Edit: By decorative, I mean the manicured lawns that are only for aesthetics that require tons of watering and sprinkler systems, and pesticides/insecticides/fertilizers.
To imitate that in the southwest you usually need irrigation.
I pulled my figures for the past year. We used approx 36,000 gallons in household use and 9,000 gallons in irrigation/outdoors use. Effectively, my lawn is equivalent to one additional person living in our home.
I find that most of the time, it's not the heat or dry that's killing lawns, it's disease and pests. If I was foolish enough to water fescue regularly in the summer heat, I would lose it to dollar spot or brown patch. I've been completely wrecked by web worm while on vacation. I have a new residence with a larger lot and plan to switch away from fescue once I've lived here a few seasons. I'm also convinced the USDA 2012 hardiness zone map is overdue for an update. Regardless, I'm not going back to a high maintenance lawn.
Where I live, in a very wet part of ther United States, water is still too expensive for watering the lawn regularly. This is usually because the meter reading is used to assess charges for sewer as well. Those who do have irrigation systems request second meters to avoid sewer charges or even tap into the gray water supply.