Leaving aside your geographic confusion, you're wrong about how water is used. Silicon Valley has a tiny water demand per dollar of output; they could even afford desalinization if needed. The industry that would die would be farming.
This is, of course, snark - but a lot of people fail to realize that agriculture is incredibly undervalue, for how important it is to society.
Unfortunately it’s too late for New Jersey and most of the mid-Atlantic.
Desalination has been the technological breakthrough of next Tuesday for most of my life. I’ll be happy to see an actual deployment. Until then we wait.
It produces some pretty nasty byproducts, so a tough sell in California, but affordability is a total non-issue.
eg. https://www.melbournewater.com.au/water/securing-our-water-s...
Cut the water supply and LA will do fine, but the farms will die. (Millions of voters vs. a handful of relatively minor donors. It's an easy decision.)