Due to the continued drought, the city ran out of water.
「日照り続きで、その街は水不足に陥った。」は英語で「Due to the continued drought, the city ran out of water.」という表現が良いと思います。
水不足に陥ったーI ran out of water.
現在水不足であるーThere is a water shortage.
水不足になりそうだーIt looks like we'll run out of water.・I heard there'll be a water shortage.
水不足になるだろうーThe water supply will run out.
大変な水不足ですーWe are in dire need of water.