The lawn phase out is coming: What local businesses need to know

June 15, 2026

California businesses will soon be affected by new statewide rules on outdoor water use. Assembly Bill 1572 (AB 1572) will prohibit the use of potable (drinking) water to irrigate non-functional turf-grass areas that are not regularly used for recreation, gatherings, or other community activities. Examples include decorative lawn along sidewalks, around building perimeters, in medians and roundabouts, near signage, and other purely aesthetic turf areas.

These requirements begin phasing in for commercial, industrial, and institutional properties, including homeowners associations, starting in 2027 and continuing through 2031, depending on property type. Businesses are encouraged to review their landscapes early to determine where non-functional turf may be present. A statewide resource, nonfunctionalturfca.org, provides guidance on identifying which areas are affected by the new regulations.

While the restrictions may require businesses to cease irrigation in affected areas, significant financial support is available to transform those lawns into attractive, low-maintenance alternatives. Valley Water offers rebates of up to $100,000 to convert nonfunctional turf to low‑water‑use landscaping, with even higher rebate maximums of up to $135,000 in some local service areas.

These incentives can greatly reduce the cost of replacing decorative grass with drought‑tolerant plants, updating irrigation systems, and installing sustainable landscape designs.

Water‑wise landscaping not only meets regulatory requirements but can also improve curb appeal, reduce water bills, and create healthier, more attractive outdoor environments for employees, customers, and tenants. Commercial, Industrial, Institutional, and Homeowners Association representatives can access guidance and support about Valley funding opportunities through virtual office hours every other week, which offer expert assistance on planning and implementing landscape improvements.

To learn more about the upcoming turf regulations, business owners are invited to visit nonfunctionalturfca.org. To explore rebate options, attend virtual office hours or begin an application, visit WaterSavings.org.

These changes present a timely opportunity for businesses to modernize their properties, reduce operating costs, and support long‑term water conservation efforts across the region.

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.