Let us zoom out a bit for perspective. Washington, Oregon, Idaho, Nevada, Utah, Arizona and New Mexico also have a bit of drought but nobody has as much chocolate colored drought as California.
We are told, furthermore, that in the past, Californian droughts have lasted from years to decades, maybe even centuries and nobody seems to know what sort of duration this particular drought will have.
The moral of the Camp Verde story seems to be that no matter how swell the place you're living in may be, if you don't have water, you go elsewhere.
So, even though this is strictly in the realm of speculation, prolonged drought in California could well depopulate the state significantly. Californian climate refugees would move elsewhere. Farm workers would move back to the Spanish speaking parts of North America. North American cuisine would revert to what it was in the 50's, that is, lots of canned green beans in the winter and canned spinach and canned corn. Vegetarianism would go back out of style.
The prime users of water in California are of course the farms and orchards that raise the 20 billion dollars worth of crops that are grown in California's Central Valley. If the Central Valley turned back to grasslands and oak savannah, perhaps some coastal cities could still survive on the water that was left over. Who knows. In the meantime, water use is being curtailed. Lawns are going unwatered, trees are dying and so on.