The plan was approved by the state Legislature last month, as the 2001 session came to a frenzied close that found lawmakers voting on hundreds of issues—some of which they had barely studied. The bill, now signed into law by Davis, requires builders whose projects would include more than 500 homes to first show that there will be enough water for their development's residents for at least 20 years.

Yet, the plan goes far beyond residential real estate. Large hotel projects are now subject to the new water-related requirements, as are 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), a rising star in the slow-growth movement. It was backed by the California Farm Bureau, as well as many environmental groups.