"It’s somewhat draconian. It’s not our preferred method of getting people’s attention, but we do have customers who aren’t getting the message, and this is a tool we can use.” LVMWD general manager David Pedersen 

My understanding is that the state of CA has denied this water district additional water and is fining them for "over using" water. So now individual water users are being punished should they run afoul of the usage rules. Just one more reason folks are leaving the state!