Large cities have deep pockets and can buy water.  Conservation is not important for the Los Angeles area.  It has a long history of taking water from others and has increased its water usage this year.     http://www.insidebayarea.com/drought/ci_26149855/see-which-californians-are-increasing-water-use-despite 

The US Bureau of Reclamation is ignoring senior water rights laws.  http://westernfarmpress.com/irrigation/friant-users-challenge-usbr-decision-court 

It must be true that "whiskey is for drinking and water is for fighting over".