No, wells are part of the problem.
Purple pipe is recycled water.
Annual rainfall is like your surplus/deficit - Aquifer levels are how much money you have in the bank. Unregulated wells tap the aquifer and don't allow it to replenish which then dries the ground causing it sink amongst other problems.
Have you ever driven through all of California - Ag valley, desert, norcal, east of the sierra?
5. Desert communities don't use meaningful amount of water - what are you talking about?