What kind of plants to landscape with?

I live in Los Angeles and the DWP will soon implement fines and restrictions on water usage due to the drought situation. We've recently purchased a house that has no real landscaping -- just a gry front and back yard. So what kinds of beautiful plants / shrubbery / flowers should we put in that do not require heavy water usage? My husband and I really like the look of "modern-style" landscaping with things such as horsetail or bamboo, but as far as I know they require a lot of water. Any suggestions would be great...thank you.