The cape flats aquifer can only really produce 5-20% (depending on the restriction level in place) of the cities water needs per annum...
Unsure what you mean.
The City as far as I know does not use water from the Cape Flats Aquifer for drinking water, at least not yet. There are studies in this regard but I doubt it will happen due to contamination.
For instance all the big squatter camps as one example reside over the Aquifer and contaminate it with waste.
In my mind its only really useful for Agriculture, like the Philippi Horticultural Area which has been farming since circa 1870.
Other contamination can come during periods of heavy rains when the Aquifer rises to the surface and the Squatter Houses flood out. Remember the Aquifer is just 1 to 3 meters below the surface at any given time, doesn't need much rain to bring it to the surface.
2015 paper on the Cape Flats Aquifer >
Source
Keeping Cape Town "green and beautiful" is part of the problem. The fact is that natural fields of lush green grass are simply not what the ecosystem in this part of the world can support. Ditto for swimming pools.
If people want to water their gardens, it should be with grey water and that is it. That aquifer will quickly become a finite resource if people are not careful.
Swimming Pools require fresh potable water, rain water or recycled water delivered by truck.
Gardens can survive on underground water and if you like, grey water and rainwater.
Rainwater can be stored in tanks and with the water that overflows from these tanks create swales for the excess water to be accepted into the earth properly instead of what happens in reality on many properties where it runs to the road and the storm water drains. Shower and washing machine water can also be directed straight to your garden, through the use of a swale or a movable pipe.
However I am going to disagree with you on your point that ONLY grey water must be used for the garden, unless to you grey water also means underground water?
While I agree that residential lawned areas can be reduced considerably in Cape Town, however we still need some lawn but that can be part of your design and plan when Xeriscaping your garden. We do however need plants and mulch to cover the ground.
I used the word Xeriscaping, while a relatively new word for South Africans, is a way of life for most Americans who have created stunning gardens using the
7 Principles of Xeriscaping, one of which is to reduce the lawn to either nothing or a small part of maybe just your backyard in order to have some soft area for animals and children to play on.
Lawn needs more water whereas a properly Xeriscaped garden can require very little water and in some cases none.
Water is one of our infinite resources, unfortunately like air which spreads through diffusion, water can only move through gravity, evaporation and come down as rain, more or less.
People need to take into account, we are in a POTABLE water crises, not an underground water crises.
The Potable Water is derived from surface dams 60kms away from Cape Town.
We need to shift from a scarcity mindset to one of abundance using what we already have.
My sprinklers will start working again soon - I'm sure to have neighbours complaining about my green garden again - I've now got two signs up, one wasn't enough.
People are like sheep, driven by the latest scarcity mindset. It was Electricity almost 10 years ago, now potable water.
Do keep watering your garden. Read up on the 7 Principles of Xeriscaping. Its colourful and has been adopted across the entire USA, in parts a lot drier than our own.
My view is that the potable water crises is going to teach people how to use water more effectively and hopefully many gardeners will start to adopt smarter garden practices and still keep Cape Town green.
Happy Gardening!