. >>> farmers along the san juoquin delta here is where it gets complicated. under a century old water rights system farmers along the delta have the right to use as much water as they want. they say they're only using as much as they need but the state is skeptical about that. the department of water resources are calling for an investigation and delta farmers are being asked to report how much water they're pumping and to prove their rights to the water. >>> because of the prolonged drought tough water restrictions went into effect today. that's where we find nanette. >> reporter: you don't have to look far to find evidence of drought. look at the dry fields. they're everywhere. that's why the city council acted earlier this month declaring a level 2 water shortage. >> i sort of wonder how it will cut back. >> reporter: morgan hill residents have done really well against the drought conserveing 20%. he saves the water while the shower is are you positiving cold in barrel. still, that's not enough according to the note he got. >> we were at like 240 gallons d