Here water pressure is 65-75 psi. That is fed from a 6" line. (We have 6", 8" & 10" domestic water supply lines).
If you are hooked to a 1.5" water line it might be corroded to the point of being almost closed with rust. It's like your trying to supply your house with a fridge/ice maker line.
You can pump a water supply line dry and that can cause it to completely collapse. That might be why the town doesn't want you to put a pump on that line.