As TFA mentions, desalination is incredibly power-hungry. Additionally, it creates ultra-salty brine as a byproduct, which is difficult to dispose of -- if you just dump it into the ocean, you'll kill fish.
Finally, desalination plants are a great option for supplying water when nothing else is available, but as soon as you can get water from pretty much anywhere else, they become extremely cost-inefficient. Take the case of Santa Barbara as a great example: drought from 1986-1992, built a desal plant for $34 million. Turned it on in March 1992, it ran until June 1992, and then it started raining ... hasn't been used since.
(http://www.santabarbaraca.gov/gov/depts/pw/resources/system/...)