The seriousness of the drought in CA really hits home when you realize that many cities may not have a supply of drinking water in a matter of months. See: California drought: Clock ticking on 17 communities’ water supply
Gov. Jerry Brown huddled Thursday with water managers looking for solutions to California’s worst drought on record. The 17 communities could run out of water in 100 days, the state warned.
On January 31, the state government made it clear that it may have to stop providing water to some localities. See this HuffPost article.
Recovery Diva 
From media accounts I have read, it seems that the Valley will be affected. That will mean lower crop yields and higher prices for many agricultural products.
We in the Southeast have gone through a long dry spell as well – our sympathy goes out to Californians affected. A big question – how much of this is affecting the Sacramento Valley? I have long believed that the biggest looming disaster is collapse of the dams and levees there. Severe drought could be a major stressor on them.