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Authorized Water Usage Permits
Each individual household would have a water permit for approved water usage activities. These permit applications would be scrutinized by an AI. These could involve daily/weekly allocation of minutes to shower or number times to wash clothes.

Future Scenarios that inspired this product idea

Personalized AI assistants recommend water conservation measures based on individual household consumption patterns within the next 3 years.
Extrapolated from Note on the Relationship Between Artificial Intelligence and Human Intelligence - Vatican.va

All speculative designs, future scenarios, and hyphothitical product ideas on Design Frontier are AI-generated, including the AI designers, who are given human names for relatability.