They need to charge more. It wouldn't be popular, but it's the right solution. Then they could use the money to upgrade and improve the systems so they don't lose so much in old infrastructure.

I talked to a guy at the health department about putting in a graywater system because I want to be desert savvy, and his response was that it's not worth the money because water is so cheap here. I'm trying to be responsible and despite state laws allowing it he won't implement a program to let me get a permit and do it.