This is a challenge that I am always aware of as I grew up in Coastal Central California where water was always something we had very little of. I take quick 3--4 minute showers and have even used the turn off while suddsing method. Water is the most precious resource on our planet and we really need to treat it as such.
My wife and I debate over if the dishwasher uses less water than hand washing. She hates the dishwasher. There are many ways that we as a family need to explore to conserve water better in our home. We have a low water (front loading) washing machine, but we could improve more---in Montpelier we pay for water and sewar and our bill is right around $100/month which seems like we should be able to get that at least 20% lower.