In late 2024, the San Diego region’s gross domestic product (GDP) reached an impressive $262 billion, surpassing the economic output of 25 U.S. states and countries like Greece, Hungary, and Morocco.
This success is attributed to the diversified economy that has developed over the past 30 years, supporting both entrepreneurs and working families.
However, this achievement was not assured. A notable challenge emerged in the early 1990s when San Diego faced historic drought conditions due to significant cuts to water supplies from the Metropolitan Water District (MWD).
During this time, San Diego’s reliance on MWD put immense pressure on the quality of life, showcasing the critical need for reliable water resources.
With less rainfall than Tucson, Arizona, and a reliance on external water supplies since the 1940s, San Diego had to confront the reality of an unsustainable water future.
The consequences of these water restrictions extended beyond just lifestyle inconveniences; they impacted businesses significantly.
Researchers in the biotech sector found it challenging to keep their equipment clean, while not-so-creative solutions like putting bricks in toilets emerged to conserve water.
It became clear that a change was necessary, and San Diego County Water Authority initiated a coalition of local business, community, and government leaders to create a more reliable and drought-resilient water supply system.
This transformative effort enabled the region’s economy to flourish across multiple industries, providing residents with enjoyable experiences like drinking local craft beers, tasting fresh strawberries, staying in nearby hotels, or advancing careers in biotech.
These successful experiences resulted from the strenuous work undertaken over the last three decades, positioning the region for future growth and stability.
However, current challenges are rising from a different direction—this time, an overabundance of water as opposed to scarcity.
Some stakeholders are calling into question the San Diego County Water Authority’s existence due to the costs associated with the investments made to ensure water availability.
Dissolving this critical agency would be a significant misstep, potentially reversing the substantial progress made and plunging the region back into the uncertainty of the past.
It could also lead to increased rates, hurting residents and businesses alike, in stark contrast to the achievements that have come from collaboration and innovation.
As former chairs of the San Diego Regional Chamber of Commerce, we stress that successful organizations are those that innovate and look forward, approaching challenges with a mindset of possibilities rather than limitations.
The San Diego County Water Authority is currently taking steps in an innovative direction, recently signing two different water transfer agreements that saved ratepayers $40 million.
Furthermore, the litigation with the MWD has been resolved, opening avenues for potential future water transfers that could benefit our region financially, encouraging further collaborative agreements across California and potentially the Southwest.
As operational efficiencies increase, it remains crucial to focus on the other side of the equation—managing costs effectively.
Experience has proven that collaboration yields better results than working in isolation.
To continue progressing as a community, we must forge a new leadership coalition dedicated to reassessing our regional water infrastructure’s ability to meet current and future needs.
The objective is to have all stakeholders—businesses from agriculture to biotech—engaged in redefining our water strategy collaboratively.
When the community works together, rowing in the same direction with diverse input, decisions made reflect more significant consideration and result in superior outcomes for the region.
Without the cohesive guidance provided by the Water Authority, the 22 member agencies would likely diverge in their objectives, potentially transforming a unified system into one of fragmentation.
San Diego’s achievement in outpacing economies like Ecuador and Louisiana stems not from random chance but from intentional collaboration and shared vision.
Now is the time to renew this community spirit and help the Water Authority navigate towards a promising future that benefits all residents and businesses in the region.
image source from:https://voiceofsandiego.org/2025/06/04/the-water-authority-built-san-diegos-economy-support-it-dont-tear-it-down/