FRESNO, Calif.—California regulators on Monday proposed relaxing water-conservation targets that have required communities statewide to cut use by 25% during a historic drought.

Communities in hot inland regions and those using new sources, such as recycled water and recently built desalination plants, could be eligible for reduced conservation requirements, said Max Gomberg, climate and conservation manager for the State Water Resources Control Board.

The state’s overall water conservation target could drop to about 22% if all of the 411 eligible water agencies apply for adjustments, Mr. Gomberg said, adding that the moves come in response to some community leaders who complained that strict conservation targets assigned to individual communities are unfair.

“For right now, drought conditions are persisting,” he said. “We’re proposing modest changes.”

California is in its driest four-year span on record, and officials anticipate a possible fifth year of drought. Weather forecasters say a strong El Niño weather system could drench the state, but one good year won’t be enough to rehydrate the parched landscape.