This doesn't have much to do with peak oil but everything to do with dwindling resources amid population density.
My question is....how are these people using the restrooms? That's got to be a predicament. No mention about that. In a city of 3.8 million people, that has to be a problem. I'm sure they don't all have composting toilets.
Second concern is...if the area is in such a cold climate, I hope their pipes don't freeze and break.