You will never start over and rationalize water like that for ag. And it's an easy and popular target for lots of people who are disconnected to it. Residential use is where the waste is.
Both can be true, but if you subject water pricing to market forces the problem can help correct itself. That won't happen for ag pricing (strong lobby) but would get rid of the relatively minuscule residential wastefulness.
Why should society let market forces decide how we treat a resource necessary for human life? I would rather trust a democratic society more than I'd ever trust any of these anti-humans that currently lead big tech. These people have shown the open disdain they have towards humanity, we are under no obligation to give them whatever they want if they just pay for it. Money is not the issue for them, they do not like being told no.
Society should, and is, openly reject such disdain and contempt toward humanity.
I'm specifically talking about local elected governments managing a municipal resource that needs to respond to market supply and demand realities over the course of time where availability of said resource fluctuates. These municipalities are run by democratically elected representatives that should be acting in the best interests of their constituents -- and if not they can be replaced.