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Lime isn't a fertilizer. Instead, it helps fertilizers, plant food, and naturally occurring nutrients reach the grass by boosting the pH level in acidic soils. While adding lime isn't a crucial task in some locations, it's vital to keeping a lawn healthy in many areas. Lime's ability to encourage healthy grass by making nutrients in the soil more effective makes the task worth the effort, regardless of location.

First, make sure you’re watering your grass early in the morning (and keep in mind you don’t have to water every day). Doing this helps ensure the water is able to soak in before the hot temps evaporate all of the water. Also, when you mow, don’t mow your grass as short as you would in non-drought conditions. Taller grass can help slow down the rate at which soil dries out. Finally, take your leftover lawn clippings and spread them out across the lawn to give it a little extra shade and nutrients.

Yes, you can use compost on your lawn alongside or even instead of standard fertilizer. Compost is rich in nutrients and organic matter and restores the balance and health of your soil. It also replenishes depleted soil, adding volume as well as nutrients. It's a great alternative to synthetic slow-release fertilizer. And if you compost at home, you can save money by applying your own compost. 

Whether or not grass will fill in bare spots itself depends on the type of grass you have. For example, grass with rhizomes (e.g., Bermuda grass) and stolons (e.g., Saint Augustine grass) will naturally fill in bald spots as it spreads laterally. However, clump-forming grasses will not spread.