The lawn can be replaced with native plants and ground covers, which are easy to care for and don't require a lot of water.

In the Northeast try:

Kinnickinnick, Arctostaphylos uva-ursi

Bunchberry, Cornus canadensis

Golden Alexanders, Zizia aurea

Partridgeberry, Mitchella repens

Twinflower, Linnaea borealis

Wild Ginger, Asarum canadense

Wild Stonecrop, Sedum ternatum

Wild Strawberry, Fragraria virginiana

Wintergreen, Gaultheria procumbens

Wood Anemone, Anemone canadensis