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> Not everywhere is the bay area where they can scale up by just piping it out a few miles into the ocean and call it good.

At least in the San Jose area, the sewage treatment was largely built 50 years ago, when it was doing a lot of agriculture, and flows are way lower with people than they were with food processing and other industrial processing. The new plant that's in progress needs and has way less capacity, even though the standards are much much much tighter.

At the one house per acre level though, you can likely manage with septic, which is incremental sewage treatment capacity, and not a huge municipal undertaking (there is record keeping and regulation and what not, so it's not nothing)