For quite some time now, water agencies have offered rebate incentives for converting those high water using lawns to drought tolerant plantings. Watching grass grow is like watching paint dry, not too exciting. So not only does the conversion save a bunch of water (which equals water bill reductions), but you will get far more enjoyment from the color, contrast, and texture of plantings, in addition to the wildlife it attracts.
For more information, please see the links below:
For Bay Area Water Supply and Conservation Agency (basically north of Palo Alto/Fremont)
For Santa Clara County Water District (San Jose and surrounding areas)
With several lawn conversions under my belt, please let me know if you have additional questions I can answer....spring is coming!