In the state assembly, there are a lot of reps who answer directly to farmers, and there are a lot of reps who answer to people with a romanticized notion of farming (and an overestimated idea of the importance of agriculture to CA's economy).
Also, the problem you describe is enormous, and not limited to water. I think it's a problem of innumeracy and lazy thinking. "I drove 6 miles to the grocery store in my SUV, but I brought a few reusable bags so I'm doing my part!" seems to be a common sentiment. The fact that they burned 2 or 3 pounds of fuel but brought an ounce (or less) of reusable plastic with them doesn't cross their mind.