Water rights out west are a big deal... apparently it's like having gold under your land here.Regulatory Capture being what it is..... ^ all too common a situation.
Broad/vague laws, by nature subject to interpretation, seem ripe for abuse..... I'm thinking of an important Canadian case still before the courts as I type.... non-Ag related, so won't post further, except to say Canadian Mischief Trial should get you there.
Practically speaking, I fail to see how even hundreds of "farmers" irrigating an acre or 3 of land for crops will put much of a dent in non-desert aquifers. With food costs skyrocketing (no accident, and we are nowhere near done with that curve), I find the idea of having to jump through regulatory hoops AND pay more taxes (call it what it is) on land that you already pay taxes on disgusting.
IF there is an actual water shortage get the Big Consumers to cut back first, before beating on the peasants.
Rgds, D.