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[jesm]

Scott
You ask some perceptive questions. Allow me to offer my insights on our water supply and quality as my 30 year professional life was spent in the water utility industry. I will be brief here but can expand if you wish in a different venue.
Yes there has been a dramatic decrease in rain and snow fall in much of North America over the past 15 years resulting in almost continual drought conditions. One can find a thousand different explanations for this but the impact is the same, reduced water resources against increasing demands as population and water dependent applications are rising.
Much more troubling here however is the challenging imbalance in water uses between politically powerful and entrenched agricultural users, that are huge,huge consumers, and our increasing water needs by industry and population. Just imagine how much water the new auto plants and their newly hired workers are using. This situation mirrors that facing Southern California where people, ie LA,SD etc., are deprived of water resources as Central and imperial valley agricultural users gobble up most of the Colorado river allocations at very low subsidized costs. It's crops versus people all over again.
The state is looking at all available options, including a scheme to "import" water from less populated parts of neighboring Jalisco state but since water is a highly emotional commodity, such solutions are almost impossible to achieve as who wants to be accused of "giving away OUR water". In Texas they say whiskey is for drinking but water is for fighting!
As we looked to purchase here last year I used some professional relationships to get handle on this situation and made contact with both government and industry insiders as to what we are getting into. To cut to the chase, it was almost universal that there are adequate resources, in conjunction with reasonable conservation, such that in our lifetime, ie 20-30 years, the water needed to maintain our manner of living would not be a problem. However without either some re- balancing of the resource allocation (more for people, less for crops) or a technological breakthrough ( recyle wastewater to potable, or similar)then our children and grandchildren, ie 50 years and further, will be faced with a diminished ability to access and use water as we have been accustomed.
On the water quality question, the systems here are doing the best they can with limited budgets and technologies with reliable and consistent disinfection being a challenge. The budget issue is totally political, in many areas of the country 30-50% of water is delivered but not paid for and the local utilities are limited in the ability to "cut-off" non-payers, thus greatly reducing monies available to install and maintain needed systems.
The bottom line is one should be prepared to implement your own method of protection and storage. In our case here for protection and convenience we are installing a whole house ultra-violet light system ($300us with a $75 per year replacement bulb) which will kill any microbial matter, thus meaning no need to use bottled water. For storage have a cistern or tinaco with a capacity equal to one week, or longer, household use. Figure 600l/day or 150 gal /day for a normal household, exclusive of irrigation. We are installing a 10,000 liter cistern for my wife's gardening habit and 2- 1100L tinacos for human consumption purposes. These amounts can be debated and may seem high but storage is cheap and protection can save your life, or at a minimum your stomach.
Thought I was going to be brief but us water guys drip and drip.
We love it here and with a bit of care and planning you will also with no serious water issues.[/font]