Drought conditions in Utah and other Western states means communities are rethinking development:

So this spring, Oakley, about an hour’s drive east of Salt Lake City, imposed a construction moratorium on new homes that would connect to the town’s water system. It is one of the first towns in the United States to purposely stall growth for want of water in a new era of megadroughts. But it could be a harbinger of things to come in a hotter, drier West…
Yet cheap housing is even scarcer than water in much of Utah, whose population swelled by 18 percent from 2010 to 2020, making it the fastest-growing state. Cities across the West worry that cutting off development to conserve water will only worsen an affordability crisis that stretches from Colorado to California…
Developers in a dry stretch of desert sprawl between Phoenix and Tucson must prove they have access to 100 years’ of water to get approvals to build new homes. But extensive groundwater pumping — mostly for agriculture — has left the area with little water for future development.
Many developers see a need to find new sources of water. “Water will be and should be — as it relates to our arid Southwest — the limiting factor on growth,” said Spencer Kamps, the vice president of legislative affairs for the Home Builders Association of Central Arizona. “If you can’t secure water supply, obviously development shouldn’t happen.”
Critics of sprawl have discussed this for decades: new subdivisions and development in arid areas taps already precious water supplies. It is not just about drinking water; it includes the water used for lawns, agriculture, parks, and other uses that come with expanding populations.
As the article notes, numerous communities are trying to encourage homeowners and residents to use less water. Replace lawns. Limit watering. Use greywater. Some have argued that water in the United States is too cheap, encouraging more use.
But, simply having more people and business might be the problem. If drought conditions continue, it will be worth watching how development – often assumed to be necessary for a good community – is treated.