No. That is not true. California water situation is very complex and convoluted. There are a bunch of zones that have water rights grandfathered to them but have the legislation permitting them to lease it.
It’s really a mess. Google ‘Resnicks’ and water in California.
Aquifer depletion is a big problem too. We pull underground water faster than it is replenished. This can permanently shrink the capacity of aquifers and/or make them unreachable.
And salt water intrusion in Monterrey county..Salinas river and Salinas valley is known as the salad bowl. It’s a ticking bomb for salt water intrusion. Already areas around San Juan Bautista have no water..no matter how deep they drill..