We have both subterranean and dry wood termites in the OC. I have had both in my house. The subterranean ones are the incredibly nasty ones that can cause structural damage in as little as a year; however according to our termite people they need moist soil to live and have to build mud tubes into your house so they are relatively easy to spot. These are also the ones that swarm in the first warm weather of the spring and you can often find out you have them when suddenly a bunch of what looks like winged ants shows up in your house or by a window.
The dry wood ones can live for years in dry wood. I have no idea how they get water. I have a house with exposed wood beams that project outside the roof line and when we moved in literally every beam had termites. You can spot treat them, or you can treat the beams with penetrating epoxy and you will kill them in situ because they can't chew through the epoxy. These are the ones that my termite people say exist in every almost every home in the OC. They will eventually do structural damage but it takes years and years.
I had dry wood termites in one of my California junipers. It was an active nest - I could tell because of the fresh "sawdust" that they dump out of the hole. In my house, the termite guys locate the exit hole, and then drill small holes into the wood and inject a penetrating pesticide in a circle around the hole. It is quite effective. In my case I took a narrow straw (normally used for squirting silicon oil) and squirted RAID into the hole. No problems since. Granted the tree was only about 2' tall, so there wasn't tons of deadwood.