In dry climate areas, which much of California is, precious water must be provided from distant sources. As far as I know, in most of the US water is provided either from private wells of from for-profit water utilities or ordinary water companies. Water is market-priced or you pump your own.
California does not have market-pricing for water, yet they historically have had less of it than most parts of the US and, as agriculture boomed there just like the population, there was no market-induced water planning. The government (!) organized water. How does that work out?
Moving Toward Real Water Prices