Right vs luxury I think is a false dichotomy. There exists a third classification: public utility. According to my apartment complex, incoming water is a public utility, and as long as you pay property taxes they have no right to shut it off. In my state (or area, I don't know), it's illegal to charge for incoming water. They can charge for outgoing because sewage access is not a public utility.

This only goes for places where it is illegal to drill a well.