There are a number of issues involved, particularly in the UK:
- the way the infrastructure is set up (the Lakes may have masses of water, but that is no use in East Anglia where there's drought)
- the energy requirements
- leaks in the system
Yes, if you consider water on a global scale under geological time scales it is a closed system and the volume of water is constant. But when the reservoirs in the South Downs are low and its only May and that's the only source of water you can use to supply drinking water to 1,000's of homes (whilst trying to leave enough to keep the rivers running and avoid an ecological problem), knowing that if you wait a few years (5 to 10) they'll be full most likely be full to capacity again isn't much help when a hot dry summer is predicted.
Desalination is common in the Middle East. Although its quite illuminating in countries such as Oman how easy it is to spot those residences that flaunt their wealth - they're the only ones that are can afford to squander fresh water to maintain a garden. "Normal" residential areas are notable for the lack of greenery, such that a lawn is a massive status symbol.
Yes, industry could and should do more. Yes, water companies could fix leaky systems. Yes, there are other people who could make a bigger difference than any of us as individuals.
But most, if not all, of the solutions to the big problems are going to take years to design and implement. Right here, right now, we can all do something to avoid using excess drinking water - be it washing veg in a bowl and then pouring it on the garden rather than down the drain, not leaving the tap running when cleaning your teeth, using a water-but to collect rain water for the pot plants, using a watering can rather than a sprinkler to water the flowerbeds... There are a myriad of ways to "save" water that don't, really, have a massive impact on day to day life - but many people are too lazy or have the attitude "why should I bother when..."