Here's what the US Drought Monitor has to say about droughts in the West:
The West: "Substantial changes were introduced across many of the dry areas across the western states this week, almost none of which were based on conditions observed during the prior week. Early April represents the approximate climatological peak in snowpack for much of the West, and conditions at this time of year provide substantial insight into how streamflows and reservoir stores will unfold as the snow melts and the warmer time of the year progresses. March 2008 was drier than normal for most areas in the West affected by dryness and drought. In fact, Phoenix, AZ recorded its first precipitation-free March since 1984. However, snowpack on April 1, 2008 was near to substantially above normal across a vast majority of the region (basin-averaged amounts below 90 percent of normal were restricted to the central Sierra Nevada, west-central and eastern sections of Nevada, south-central Idaho, and most of the higher elevations across the southernmost Rockies, where peak snowpack tends to occur earlier in the year). This bodes well for the forthcoming warm season, but must be considered along with the dry 2006-2007 winter across most of the region, and even longer-term dryness across Arizona, southern sections of California and Nevada, much of central and western Wyoming, and a few other areas scattered across the West. As of April 1, only Arizona reported above-normal statewide reservoir storage, and 6 states (WA, OR, NV, UT, NM, and WY) reported only 65 to 75 percent of normal, though this of course should be bolstered as the current substantial snowpack melts."

So what's all the fuss about? Apparantly we are doing much better than most of the stares, so let's just keep on wasting until we catch up with the South West. Got to keep those lawns moist--you know the average American runs their sprinkler 3 times a day!