KQED, the PBS member station for the San Francisco Bay Area, has an interesting article (the title, of which, I shamelessly ripped off) about the increasing adoption of artificial turf by home owners as a means of reducing water usage. We can attest to this as we recently installed a playground for a school that replaced 20k of grass with artificial turf. We've also seen adoption at the high end of residential homes to facilitate private soccer and play fields with the goal of both safety (we put 1" pads below the turf) and water usage. Note that some cities and county's have very strict water usage limits and so artificial turf is a good solution for hydrozone plans.
A side benefit of artificial turf is that maintenance can dropped significantly.
The article discusses how municipalities have created and increased incentives towards adoption. Although true, getting the credits can be tricky so be sure you understand what's required and stick to the mandated protocols.
I have mixed feeling about artificial turf given the fact that we tend to deal in natural materials most of the time. But reality is a series of trade-offs and so having water to drink is probably the more dominant consideration.
List of rebate programs, here.