Reliable water starts with smart investments

May 28, 2026

The Anderson Dam Tunnel Project contractor installs one of two 11-foot-diameter fixed-cone valves in the diversion outlet structure. Water from the reservoir will be released through these large-diameter valves during diversion operations.

Santa Clara County’s water system is aging, and major upgrades are underway across the region to prepare for future droughts, climate challenges, and growing water needs.

Valley Water’s FY 2026–27 budget focuses on investments that strengthen water reliability, improve public safety, and modernize the infrastructure our community depends on every day. The budget prioritizes critical infrastructure improvements and drought-resilient water supplies while also making difficult decisions about which projects will move forward.

One of the biggest changes from last year’s budget is the decision to pause the Pacheco Reservoir Expansion Project. After reviewing project costs, changing water supply conditions, and long-term water needs, Valley Water shifted focus toward investments that provide greater flexibility and reliability for the community.

Our agency is prioritizing projects that strengthen the existing water system and diversify local water supplies, including:

Continuing the Anderson Dam Seismic Retrofit Project to restore the county’s largest reservoir and improve public safety
Upgrading the Rinconada Water Treatment Plant to improve reliability for the next 50 years
Replacing aging pipelines, including the Almaden Valley Pipeline
Expanding purified water and potable reuse efforts through the Pure Water Silicon Valley Demonstration Facility

To support these investments, updated water rates will take effect on July 1, 2026.

New rates

Most county residents do not pay a bill directly to Valley Water; instead, they pay their local water retailers. However, the cost residents pay the retailers is affected by Valley Water’s cost of supplying that water. For the average household, the estimated monthly increase of Valley Water’s portion of the bill is:

About $5.63 per month in North County
Between approximately $0.93 and $1.98 per month in South County, depending on the groundwater benefit zone

We recognize the financial impact any rate increase can have on residents and businesses. That is why Valley Water continues to invest in programs that help customers save water and lower their bills.

Saving money and water

One of those programs is the Water Rate Assistance Program (WRAP), which helps eligible low-income households pay their water bills through direct financial assistance. WRAP is part of Valley Water’s ongoing commitment to making water affordability a priority while continuing to provide reliable water service throughout Santa Clara County.

In addition to WRAP, Valley Water continues offering conservation rebates, landscape transformation incentives, and water-saving resources that help the community use water more efficiently.

Santa Clara County’s water system was built over generations. Maintaining and modernizing it requires long-term planning, responsible investments, and a continued focus on affordability.

As the region grows and climate conditions continue to change, the investments included in Valley Water’s FY 2026–27 budget will help keep the county’s water system reliable, safe, and prepared for the future.

Valley Water manages an integrated water resources system that includes the supply of clean, safe water, flood protection and stewardship of streams on behalf of Santa Clara County's 2 million residents. Valley Water effectively manages 10 dams and surface water reservoirs, three water treatment plants, an advanced recycled water purification center, a state-of-the-art water quality laboratory, nearly 280 acres of groundwater recharge ponds and 333 miles of waterways. We provide wholesale water and groundwater management services to local municipalities and private water retailers who deliver drinking water directly to homes and businesses in Santa Clara County.