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There are several 'forward thinking' landscape companies in CA who are offering to revamp residential gardens to drough tolerant layouts by removing lawns and planting appropiately for 'free' - ie the client pays zero.
It's called 'Cash for Grass'. They acheive this by collecting rebates from the water companies available to residental property owners.These rebates are then used to revamp their Yards, gving effectively a free service.
However, many have complained they end with a bland, empty looking lot....
My bother use to pay over $16k per year for water (and increased water taxes) but when they moved house they had their yard totally re-landscaped to resemble a mini desert. They really didn't have much choice but it works for them and is considered low maint, However he did mention that a local landscape company is cleaning up spraying peoples totally scorched lawns green or any other colour of choice!
Other areas are now permitting artificial lawns to be installed whereas before these were banned. A number of states are using this along their highways.
As Gary mentioned, water companies are giving rebates to give up their lawns, Nevada being one of the largest states to pay out.
Certainly in the South East quite a few lawns are showing signs of suffering due to lack of decent recent rainfall and I have even seen a fair number of lawns being sown with Kentucky Bluegrass with is more drought resistant than most of our own home grown grasses.
I can see that overtime as the weather changes so will our choice of soft landscaping to accommodate the changing environment be it flood or drought.