New Mexico faces water scarcity due to reduced supplies, interstate limitations, climate change impacts, and dwindling groundwater. Current water distribution laws favor those who have used the water the longest, primarily agricultural users, leaving recent urban users vulnerable during shortages. While stricter enforcement could address decreased supply, it would disproportionately affect urban areas. The 2019 Water Data Act and 2023 Water Planning Security Act offer solutions to enable data-driven water management and community-based planning for a sustainable water future. Communities and regions need to collaborate on plans, based on solid data, to reimagine and adapt to a more arid climate and less water. This will require financial support, new ways of thinking, and active involvement of community members, agencies, and more.