The general recommendation for albuquerque is a buffalo/blue grama mix for a xeric turf. I don't think you are going to find that in sod in the abq area though (need to seed it). Otherwise you are not going to have a lawn that doesn't take much water.

The other alternative for cool season grasses would be tall fescue. Although it develops a deep root system which makes it a little more drought tolerant than blue grass, it still is going require more water than your thinking. You'll probably end up watering it *at least* twice a week in mid-summer. More so if you are trying to get sod established.

As for the dog factor, I don't think buffalo or grama will take the abuse very well. Tall fescue will.

One things for sure though, if you're thinking about installing a new lawn, make sure it has a sprinkler system to back it up. It is difficult otherwise to maintain a lawn (especially cool season grass) in abq otherwise.

Are you asking too much (low water,heavy foot traffic grass)? Probably. If bermuda grass was generally used here, I'd say go with that. But it is usually grown only in the southern part of the state. It's water requirements are somewhere between fescue and buffalo/grama. It's a very agressive grass though and you would need to contain it somehow.