On January 1, 2017, a new California Civil Code: Senate Bill No. 407 Chapter 587 requires that all homes built on or before January 1, 1994, must be equipped with water-conserving plumbing fixtures including low flush toilets (1.6 gallons per flush), showers (not more than 2.5 GPMs), and interior faucets (not more than 2.2 GPMs).
The Bill requires that a seller or transferor of a home, multi-residential or commercial property disclose to a purchaser or transferee in writing the specific requirements to replace these fixtures. The Bill also requires making specific disclosures in this regard. This most likely will factor into negotiations where the seller could remedy the issues, or the buyer accepts those conditions and takes on the responsibility to make the upgrades. Understandably this should be documented to protect all parties involved.
Locally, the City Council of Santa Barbara on December 6, 2016, passed a regulation banning lawn watering with limited exceptions as we go into our sixth year of a drought. This regulation takes effect on January 1, 2017.