I'm amazed by how many people seem to think that consistently lower rainfall, more people and more water used per person would not lead to problems, if it weren't for those greedy water companies
Yes, storage is part of the problem as the population has grown; but frankly, people are using ridiculous amounts of water - even a low-flush toilet will send 4 liters of perfectly good water down the drain - in many parts of the world those 4 liters will make the difference between life or death. Building more reservoirs (not entirely sure they are needed; how will we fill them up if it doesn' rain?) and improving infrastructure should go hand in hand with changing our demands, and it's cheaper and quicker to start managing our demand than putting in a reservoir.
The attitude of those that say they'll use however much water they want until the water companies have fixed all the leaky pipes also demonstrates a lack of understanding of how the water cycle works. Groundwater is as much part of this as surface water, and in England I believe quite a bit of the water that comes from the taps is actually groundwater. Leaking water pipes, maybe rather perversely, contribute to maintaining the water table, especially in cities where every bit of ground has been tarmaced over (but hey, everyone is entitled to a smooth driveway, right!), so rain doesn't stand a chance to actually make it into the ground. Leaking pipes aren't so much about wasting water, but about wasting energy (i.e. making potable water costs a lot of energy which gets wasted as it doesn't reach the customer).
here's hoping for rain sooner rather than later