They are used and can in fact be highly successful. Here’s one of the better “in practice” studies of the process. The tlDr is that you really want a fairly wide mist around the building envelope which helps reduce burning ember intrusion. Proper eave and vent screening is also a critical part of this process but even without that or properly managed defensible spaces the vast majority of homes with a *functional* sprinkler system survived (there are a couple that were in question as to functional.. the rest survived) this fire whereas the majority without did not.
https://wildfiretoday.com/documents/Outdoor_sprinkler_systems_effectiveness.pdf
you would also ofc want to make sure the water tower wouldn’t burn down and make sure you have sufficient pressure (possibly a propane powered booster pump)
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