Aquifers are replenished at some maximal rate. If we draw from them faster than that rate they will dry up. So yes water does get recycled but we can still use up all the available water in an area and run out of it.
This is somewhat location dependent, certainly if you live in a low population density area with lots of rainfall, water conservation may not be that relevant. But in cities or in dry areas it is especially important as they can easily exceed the rate water is replenished in aquifers.
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