FOLSOM, Calif. — Evert W. Palmer has a vision for this city famous for its state prison: 10,200 new homes spread across the rolling hills to the south, bringing in a flood of new jobs, new business and 25,000 more people.
Yes, Mr. Palmer, the city manager, is well aware that Folsom Lake, the sole source of water for this Gold Rush outpost near Sacramento, is close to historically low levels, and stands as one of the most disturbing symbols of the four-year drought that has gripped this state. And that Folsom is under orders to reduce its water consumption by 32 percent as part of mandatory statewide urban cutbacks.