Only problem with this thinking is that consumption has nothing to do with the cost of our water bills. The vast majority of the bill is taxes/fees/etc.

You could use no water all month and your bill would still be the same compared to your normal usage due to this. In no way does our high water cost disincentive water usage because the majority of the cost has nothing to do with the usage but rather the fees to upkeep the large, wildly mismanaged/neglected, water system we have in the city.