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.
Society should, and is, openly reject such disdain and contempt toward humanity.
Even without the economic incentive, I've turned off the lawn irrigation installed by previous owners, use soaker or drip irrigation in my berry and vegetable gardens, and water ornamental plants only when they're really in distress during our summertime droughts. It's amazing how soil can go from moist and wonderful in the spring to desiccated powder in a summer drought.
Coming soon, we'll be replacing the front yards with creeping thyme and maybe wild strawberries. I do need to see if wild strawberries, though, are a groundhog buffet. I hate those little fuckers.