California's water use is dominated by agriculture[0]. 10% of the water is urban use, how much of that is commercial vs residential? Average is around 100 gallons (~370 liters) per day or much less, depending on the season) Higher prices are already a reality. The cycle is reduce usage, not enough money being made, a water main blows in DTLA [2] since they're 100 years old, increase rates, repeat.

[0] https://cwc.ca.gov/-/media/CWC-Website/Files/Documents/2019/...

[1] https://lao.ca.gov/Publications/Report/3611

[2] https://www.nbcnews.com/news/us-news/surfs-water-main-break-...