Las Vegas is not his hometown. He moved Zappos to Las Vegas from SF for a more favorable tax environment, cheaper cost of living, etc.
And, about the comment about water shortage-- doesnt a significant portion of California's water flow through Nevada from the Colorado river? If so, Nevada is not lacking in water as much as in political power.
California gets ~10% of their water from the Colorado River System. They'll be getting less as more states use their full allocation and the surplus that California has been getting dries up. There is ongoing battling about distributing the water more fairly but that only delays the issues that Las Vegas faces with current population growth. The city has done quite a bit to provide incentive to residents to conserve water with things like tax credits for xeriscaping their properties instead of having lawns. They'll have to do quite a bit more to either curb the growth or find other sources of water.
As far as the distribution of the Colorado River Systems water goes, that's a mess that dates back to 1922.
Las Vegas is not his hometown, but it is mine (and my father's, and his father moved to Boulder City at 19 to work on Boulder/Hoover Dam).
Family business growing up (started by grandfather/father above): drilling water wells. So, ya know, I've got a layman's understanding.
In the West, water rights are property rights. There are nearly 100 year old agreements on the split of water taken from the Colorado river.
Look up Arizona v. California.
In summary, as long as at least 7,500,000 acre feet of water is available from the Colorado River, California is allocated 4,400,000 acre·ft; Nevada, 300,000 acre·ft; and Arizona, the remainder. If more water is available, California is entitled to 50% of the water from the Colorado River, Arizona to 46%, and Nevada to 4%. If less water is available, the Secretary of the Interior must allocate the water according to various formulas (which were the subjects of the court cases) to ensure that each state receives a specified amount, with California receiving an absolute fixed maximum of 4,400,000 acre feet per year (547 U.S. 157).
And, about the comment about water shortage-- doesnt a significant portion of California's water flow through Nevada from the Colorado river? If so, Nevada is not lacking in water as much as in political power.