Hmm, there is a lot of speculation in this thread, from people looking at this with a very simplistic and unrealistic view of the water industry.
You can take the following as fact:
The water companies take very seriously the issues that have been raised here. Desalination is by no means out of the question, medium term.
The water companies in the UK are heavily regulated by OFWAT, and are penalised for wastefulness. No such regulation exists for the consumer.
Everyone wants new pipes, but no-one wants to see their bills rise by the amount necessary to achieve this. The infrastructure is getting old so just treading water, excuse the pun, is pretty damn costly.
Rainfall has for the last few years been very low- this January was the driest in decades. Water restrictions are the sensible way to prolong supplies.
Even level 4 water restrictions aren't going to stop anyone from doing their water changes.
The average usage of water per head has increased over 15% in the last 20 years, and the population has grown too.
So you will see it's not a question of greed, supply is a complex issue involving many factors- currently all of which are contributing towards water shortages. Expect this to get worse not better in the coming decade BTW.
@suzie, the population density of the UK is 243 people per sq Km, the USA's is 30. That's a lot more rain per person required. But that's not the whole picture. To draw a parallel, why is it that in the USA, one of the biggest economies in the world with huge financial and natural resource, people in large population centers such as Florida, are content with regular and prolonged power shortages? It's a tough issue to get one's head around!