A city may be more efficient than lower population density on a per-capita basis but that is only tangential to the problem. A city in the California desert is not a good reason someone in NYC should have to endure a washing machine and dishwasher that are so stingy about water usage they are frequently ineffective at their primary task.
>As for water usage, think first of agriculture, then industry. Only after that do cities come into play. Cities are relatively small water consumers.
Where do those agricultural products get sold and eaten?
<insert screeching about "taxing muh negative externalities" here>