Artificial turf. It looks real, lush and green and fools just about everyone. There are many types now, go to the home center and take your pick. Remember, you and your friends will be seeing it from five feet up, not from the 1 foot away from which you will be examining it at the home center.

The kids can run and play in it, you don't need to install a sprinkler system, you don't need to worry about drought and periodic "no watering" restrictions and the "lawn" will always look great. You won't need to worry about voles or other varmints digging holes or rolling it up either.

Probably a fescue, or common Bermuda. St. Agustine grass is very coarse bladed & tough. . Are you doing it with sod? Preparation is the key for replacing any grass. You should probably hire a landscaper to do it since it involves sprinkler installation also. ( unless you have someone very energetic & handy ). Or just artificial turf, a good quality variety, not the cheap Astro turf looking ones. One of my friends has a variety so real looking that one of his neighbors scolded him for watering his lawn too often during the drought. Water restrictions have been lifted for many in California but we still need to use it wisely. Maybe do a combo of real grass ( cutting down on the square footage ) & borders done in drought friendly plants which are ideal for your location. Mediterranean style landscaping, relying on succulents & other water wise plants. The nurseries in your area have a big inventory of those now. Btw, artificial turf for a 1,000 square feet will cost $8,000 on up , it’s not cheap.

I totally understand your point of view but I would like my kids to be able to play on real earth not synthetic cover, which I believe can pose health problems of its own. Ideally I’d love to find something that will be natural and not take up a lot of natural resources. We are a family that is very aware of lightening our load in terms of how we use resources and caring for the planet. Also not big chemical users. I’m open to grass alternatives, but something that will stand up to my kids’ feet. Thank you for your thoughts!

My husband is handy and has prepped our yard before but we used seed. He will prep again and install system. Just looking for recommendations on type of system and sod. I’ve heard of drip irrigation. I suppose I should research that more. Thank you

Drip irrigation isn't good for grass, more for individual plants in planters. Grass needs sprinklers. I'm in San Diego coastal. Replaced grass with pavers and artificial turf. The grass would burn even with frequent watering and gophers and raccoons were digging it up and turning it over. Much better now with zero irrigation on our property.

Since your husband is handy I would cut down on the square footage some & install sprinklers & tall fescue sod ( available everywhere ).