As climate change continues to pose global challenges, understanding how individuals perceive and respond to its effects is crucial for informed policymaking and community engagement. Conducting the Bayesian Mindsponge Framework (BMF) analysis on a dataset of 1,831 water users in Albuquerque, New Mexico, the study explores the intricate dynamics between climate change belief, awareness of water scarcity, and water conservation behaviors. Results reveal a complex relationship wherein residents with increased awareness of water scarcity demonstrate intensified water conservation behaviors, particularly when believing in climate change’s negative impacts on water supply. The moderating role of water scarcity awareness introduces complexity, suggesting that the correlation between residents' belief in climate change and their engagement in water conservation behaviors depends on their awareness of local water challenges. This study highlights the importance of appropriate interventions that consider both psychological and contextual dimensions in promoting sustainable water management practices. Policy recommendations emphasize integrated awareness campaigns, developing an eco-surplus mindset, and incorporating sustainability principles aligned with the Sustainable Development Goals.