The measure was approved late last week, as the 2001 state Legislative session came to a frenzied midnight close that found lawmakers voting on hundreds of issues—some of which they had barely studied. Davis has indicated that he will sign the bill, which would require builders whose projects would include more than 500 homes to first show that there would be enough water for their development's residents.

Yet, the plan goes far beyond residential real estate. Large hotel projects would be subject to the new water-related requirements, as would new businesses that want to erect a headquarters complex or industrial facility that would employ more than 1,000 workers.

The measure was authored by Sheila Kuehl (D-Santa Monica). It is backed by the California Farm Bureau, as well as many environmental groups.