In the early 1900s, what did it mean for cities to be "dry"? Cities had severe water shortages and restricted water usage. Cities imposed extremely high taxes on water usage. Cities restricted the sale and consumption of alcohol. Cities allowed consumption of alcohol as long as it was taxed.

Wrong its actually C. cities restricted the sale and consumption of alcohol.

Dry cities, as what was portrayed during the early 20th century, are usually characterised by cities having restricted water usage and more frequent water shortages. In addition, the water supply is not in accordance to the water demand by the consumers at that time thus yielding huge economic losses and problems inside the city.