The state's agriculture industry uses 80 percent of our water, but accounts for less than two percent of the economy.
Brown said farmers are not receiving any water from the federal government, and need it to help feed the world.
"Of course we can shut it off if you don't want to produce any food and import it from some other place," he said. "Theoretically you can do that. But that would displace hundreds of thousands of people, and I don't think that is needed. There are farmers who have senior water rights. Some people have a right to more water than others. That's historic. That's built into the legal framework of California. And yes, if things continue at this level, that's probably going to be examined."
VIDEO: Gov. Brown issues first-ever mandatory statewide water use restrictions
Gov. Brown issues first-ever mandatory statewide water use reductions
With a record-low snowpack amid the state's drought, Gov. Jerry Brown directed the State Water Resources Control Board to implement mandatory 25 percent reductions in water usage by California cities and towns through February 2016.
The governor says state water districts have the power to punish those who don't follow the mandatory water restrictions.
Brown also repeated his conviction that global warming is a fact.
At this point, Tassajara Valley residents are considering trucking in water from Pittsburg. They say it could cost them up to $2,000 a month.
For water rebate information from Bay Area water suppliers, click here. And click here for tips on how to conserve.
For full coverage on the drought, click here.