Both. We're talking about both. You're absolutely right about Arizona (and other states). We're not conserving water at all.
Grass lawns, swimming pools, decorative water fountains all over the place, car washes everywhere, everything has to have high water pressure behind it. Raising alfalfa for high maintenance horses in Saudi Arabia, depleting the water table, still building McMansions in areas without water access. All the things.
Then everybody loses their damn mind because a saguaro cactus at a botanical garden collapsed.
We are not adapting to the reality of current circumstances fast enough or prudently enough.