The San Diego County Water Authority (SDCWA) and the Metropolitan Water District (MWD) are poised to announce a landmark settlement that resolves years of complex legal conflicts stemming from a 2003 agreement to purchase water from Imperial Valley farmers.
These disputes have accumulated significant legal costs, costing San Diego ratepayers approximately $20 million. The core issues revolve around the fees that the MWD charges to transfer water bought from the Imperial Irrigation District (IID) to San Diego.
Under the original agreement, the Water Authority committed to purchasing water from IID for several decades and invested in infrastructure improvements, like lining canals that convey water from the Colorado River. This initiative has yielded substantial water savings due to reduced seepage, benefiting San Diego’s water supply for years to come.
However, the fluctuating costs imposed by MWD for transporting this water led to extended legal battles.
Daniel Denham, the general manager of the Water Authority, expressed optimism about the impending settlement, highlighting several key outcomes that will significantly impact San Diego’s water supply arrangement.
First, the settlement will establish a fixed rate for the transfer of water, eliminating uncertainties tied to fluctuating costs and making it easier to renew future transfer agreements.
Additionally, this agreement safeguards the flexibility of the Water Authority to adjust its water supply based on demand.
One of the most promising aspects of the deal is that it opens avenues for the Water Authority to sell surplus water resulting from its substantial investments in water transfers from the Imperial Valley as well as from the Carlsbad desalination plant.
The new framework allows the Water Authority to consider selling water to other Southern California water agencies or even back to MWD, should they require it.
Moreover, there are provisions in the agreement that permit the Water Authority to sell water out of state, provided there is no local demand.
Denham emphasized that the deal effectively stabilizes supply and transportation for approximately 50 percent of San Diego’s water supply, adding that the previous mindset of obstinacy has shifted to one that embraces the broader picture of water management and collaboration.
Marcia Scully, the general counsel for MWD, also noted in a memo to the Board of Directors that the deal introduces new flexibility for San Diego in terms of the timing and volume of water deliveries, alongside enabling exchanges between agencies.
This newfound ability aligns with recent criticisms from San Diego City Councilmember Sean Elo-Rivera, who has called out the Water Authority for not prioritizing efforts to sell its excess water.
As the region faces potential rate increases, which could reach as high as 60 percent for ratepayers amid the ongoing investments in water purchasing and desalination, the capacity to sell surplus water becomes more critical.
“In a dry year, like we have seen recently with certain areas of Los Angeles restricting water use to only one day per week, we have the opportunity to sell water, and MWD can distribute it to its service area,” Denham said.
He also noted that if MWD does not require the surplus water, this settlement lays the groundwork for transactions with regions beyond Southern California.
A press conference and ceremony to commemorate the agreement are scheduled for Monday morning. Notably, the settlement does not require approval from the boards, as it adheres to the previously established parameters for agreement.
This settlement marks a significant turning point in the relationship between San Diego and the MWD, promising to enhance water supply management and addressing long-standing concerns among ratepayers.
image source from：https://voiceofsandiego.org/2025/06/01/big-la-sd-water-settlement-reached/
