Our well is 500' and am told will produce about 35GPM. I'm not sure what the static level is, but the pump is set at 399'. I have tested it for various stuff with home test kits, but have never sent the water off. Its very soft, has no iron and no smell. Tastes great. We're happy with it.
I don't understand why a municipality would require any particular GPM for a well. It is what it is. One GPM is better than zero. I don't get it. They'd rather you have NO WATER than one GPM? You can pump 480 gallons over an 8-hour night - should be plenty for most home use if you have a big enough tank. Probably no irrigation however.