We don't
today have the water for that. An also today, it's not worth it to build expensive desalination plants.
What increasing the density does do, is bring forwards when desalination becomes economically worthwhile, solving that better than having only low-density single-family homes.
Try this series on the economics of rural development. https://actionlab.strongtowns.org/hc/en-us/articles/44022590...