Follow the water

As residents of Southern California, understanding this supply chain, particularly in the context of rising costs and conservation efforts, is crucial. This comprehensive guide will unravel the layers of water supply in Southern California, focusing on the chain of entities involved in this process and the reasons behind their reasons for increasing water costs. About 25 percent of the water used in Southern California typically comes from the Colorado River. Another 30 percent originates in the Northern Sierra. The remaining 45 percent comes from a mix of what is considered local supplies, including the city of Los Angeles’ eastern Sierra deliveries and recycling, desalination, and groundwater supplies. That means most of our water travels a great distance to get to our faucets.

The Water Supply Chain in Southern California

1. Starting Point – The Metropolitan Water District of Southern California (MWD): The MWD stands at the top of the supply chain. It is a behemoth in water management, serving as a primary water source for the entire Southern California region. The MWD imports water mainly from the Colorado River and the Northern Sierra, contributing to about 55% of the region’s water supply. The remaining 45% is sourced locally, including Los Angeles’ eastern Sierra deliveries, recycling, desalination, and groundwater supplies.Director Richard Atwater represents FMWD on the MWD Board of Directors. The district’s 38-member board voted Tuesday to raise water rates by 8.5% in 2025 and an additional 8.5% in 2026. This will increase costs for 26 cities and retail suppliers that receive imported water delivered by the MWD. https://www.businesswire.com/news/home/20240409985085/en/Metropolitan-Board-Adopts-Two-year-Budget-Funding-Work-to-Reliably-Provide-Water-to-Southern-California
2. Middlemen—Foothill Municipal Water District (FMWD): Incorporated in 1952, FMWD plays a pivotal role as a water wholesaler, helping to meet the increased water needs of the rapidly growing foothill communities following the end of World War II. Community leaders and voters saw the need to supplement local groundwater with water imported by the Metropolitan Water District of Southern California (MWD). At that time, MWD delivered Colorado River water into the Southern California region for about ten years through its Colorado River Aqueduct. Since then, MWD also received water from the California State Water Project in 1972. Foothill officially joined Metropolitan in 1953 and is one of its 26 member agencies today.It purchases water from MWD and supplies it to various local districts. FMWD’s importance burgeoned post World War II, addressing the increasing water needs of growing communities in areas like La Canada Flintridge, Altadena, and La Crescenta.
3. End of the Chain – Local Water Districts: Districts like the Crescenta Valley Water District are at the end of this supply chain. They purchase water from FMWD and then distribute it to households and businesses in their respective areas.

Rising Costs and Conservation Paradox

1. Incremental Rate Increases: MWD and FMWD have steadily increased their water rates. The Metropolitan Board has adopted an 8.5% increase for 2025 and 2026. Similarly, FMWD has consistently raised rates annually since 2002, with a notable 37% increase between 2008 and 2021. The Foothill Municipal Water District has increased water rates every year since 2002, and they increased approximately 37% between 2008 and 2021. The Foothill Municipal Water District (FMWD) has a notice of a water rate increase for 2024 that will take effect on March 1, 2024.
2. Reasons for Rate Increases:
   • Importing and Treating Costs: A significant portion of Southern California’s water is imported, entailing high transportation and treatment costs.
   • Infrastructure Adaptation for Climate Change: Investing in infrastructure to adapt to the challenges posed by climate change is another cost-incurring aspect.
   • Revenue Declines Due to Conservation Efforts: Paradoxically, conservation efforts have led to decreased sales for these water districts, necessitating rate increases to balance the deficit.
3. Tax Implications: Besides rate hikes, property tax assessments related to water infrastructure are set to double, impacting homeowners across Los Angeles and Orange County.

Future Outlook and User Implications

The increasing costs underscore the complexity of managing a sustainable water supply in a region heavily dependent on imported water and facing the challenges of climate change. Users are encouraged to understand these dynamics, partake in responsible water usage, and stay informed about local water management decisions and policies.

“Our sales are declining, and we need to make that up somehow,” Ortega said, as reported by the Times. “We’ve made up the revenue and stabilized the past rates with the reserves, and we can’t keep doing that.” Read more.

As we navigate through these changes, the balance between conservation, cost, and sustainable water supply remains a crucial challenge for both the water districts and the residents of Southern California. How much are these Density bonus projects eating into supply challenges? Why is the consumer penalized for conservation? Why do we need the middleman? All things to think about?