Knott's Soak City Waterpark also recycles and reuses almost all its water.
"Unlike your toilets and sinks at home, this is a closed loop system, which means the water remains in the system and is constantly tested and treated in a safe manner just like an aquatic swimming pool," Knott's Berry Farm said in a statement.
Read MoreWilliam Shatner's California drought solution
In addition to urging guests to reuse towels and forgo daily bed linen changes, many hotels are planting drought-tolerant landscaping that replaces natural lawns with artificial turf. In addition, they are speeding up schedules for installing water efficient toilets.
"Saving water is not a new concept for hotels in California, but now many properties are getting creative with their efforts," said Kevin Carroll, executive director of the Hotel Council of San Francisco.
"Given the crisis—and it is a crisis from a water standpoint—you have to take it to the minute level," said Tom Klein, regional vice president for the seven Fairmont Hotels and Resorts in California.
Klein said Fairmont guests now receive a card advising of the drought conditions, and explaining how much water can be saved by taking short showers (about 2.5 gallons per minute). They are also encouraged to reuse towels and bed linens (about 20 gallons a day), although its not mandatory.
At resorts with golf courses, "we've reduced sprinkle time and are only watering areas essential to the game," said Klein.
Just off the coast of Southern California, Catalina Island hotels, vacation rentals and restaurants are working hard to meet water restrictions imposed by Southern California Edison. Those efforts actually started eight months before the recent statewide cutbacks announced by Gov. Jerry Brown.
Businesses on the island—and across the Golden State—are going the extra mile to emphasize the importance of conservation.
"Vacation rentals and hotels have mounted small hourglass devices in the showers to get you moving quickly and, where appropriate, restaurants and sandwich shops are using paper plates and disposable cutlery so they don't have to run dishwashers," said Jim Luttjohann, president and CEO of the Catalina Island Chamber of Commerce and Visitors Bureau.
At Sierra Mar, the restaurant at Big Sur's Post Ranch Inn, executive chef John Cox has his staff using compressed air, instead of the spray nozzle at the kitchen dish station normally used to clean plates.
By doing that "we have been able to reduce the usage of the water in that area by 80 percent, and actually increased productivity," said Cox. Several other restaurants in the state have already switched to this system, while many others are pricing equipment and running numbers on how much they can spend and save.
"California has an estimated 60,000 full-service restaurants," said Cox, "If each of these restaurants switched to compressed air for precleaning plates and could save even just 250 gallons per day, that would equal over 5 billion gallons of water per year."