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Valley Water, Congresswoman Zoe Lofgren and Biden Administration announce federal funding for South Santa Clara County flood protection project

September 13, 2024
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Chair Hsueh at the Upper Llagas Creek news conference.
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MORGAN HILL— U.S. Congresswoman Zoe Lofgren (CA-18), Valley Water and the Natural Resources Conservation Service today announced $80 million in federal funding for construction on the final phase of the Upper Llagas Creek Flood Protection Project.

Each year, residents in South Santa Clara County experience flooding from the creek that threatens properties, closes major roads, and inundates agricultural land. Once complete, the Upper Llagas Creek Project will protect roughly 1,100 homes, 500 businesses, and over 1,300 acres of agricultural land.

“This project has been in the works for 70 years and, thanks to NRCS funding, it’s finally coming to fruition,” Valley Water Board Chair Nai Hsueh said. “I would like to thank Congresswoman Lofgren and the Natural Resources Conservation Service for helping our agency fund the final phase of this critical flood protection project. We would not be here today if not for the help of our federal partners.”

“For decades, residents and businesses in Morgan Hill and South Santa Clara County have waited for improved flood protection, and I am glad and relieved we’re nearing the finish line for this much-needed Upper Llagas Creek project. Thanks to the $80 million federal investment we secured, Valley Water will be able to complete the final phase of this project that I have personally been advocating for nearly 30 years,” said Rep. Zoe Lofgren (CA-18). “From giving homeowners peace of mind to avoiding the closure of major roads, this federal investment will benefit the entire community and region. I remain committed to keeping our community safe, and I will follow this project along – and advocate for its expediency – until it’s completed.”

The Upper Llagas Creek Flood Protection Project consists of approximately 13.9 miles of flood protection improvements along East Little Llagas Creek, West Little Llagas Creek, and Llagas creeks within the cities of Gilroy, Morgan Hill, and the unincorporated area of San Martin. In May 2024, Valley Water completed Phase 2A of the project, including the construction of a 2,300-foot-long tunnel underneath downtown Morgan Hill. Phase 1 was completed in April 2022, including the creation of new wetland habitat at Lake Silveira.

Valley Water anticipates completing the final phase, and overall project, in the spring of 2027. Once completed, this project will provide a 100-year level of flood protection to urban areas of Morgan Hill, which means Llagas Creek should be able to withstand flooding in the event of a large and rare storm event that has a 1-in-100 (1%) chance of occurring in any given year. 

“We understand that we don't have flood protection in Morgan Hill until the third phase is done,” said Valley Water Director John L. Varela, who represents South County. “Like so many of my neighbors, I vividly remember the aftermath of some of the major flooding incidents in Morgan Hill over the years. This federal funding is so important. It will allow us to complete this critical flood protection project that is decades in the making.”

“NRCS is proud to be an integral partner on this monumental project to help protect residents of Morgan Hill,” said NRCS California State Conservationist Carlos Suarez. “NRCS’ watershed programs were created to protect local residents from natural disaster events, and this is one of the largest projects that our Agency has funded.”

The Upper Llagas Creek Flood Protection Project, first authorized in 1954 under the Soil Conservation Service (now NRCS), will provide critical flood protection to communities in south Santa Clara County, including several that are economically disadvantaged.

The NRCS funding will help finance the final stage of work, Phase 2B, which includes improvements along approximately eight miles of Upper Llagas Creek and its tributaries, East and West Little Llagas creeks from Highway 101 to Llagas Road. This work includes:

  • Installing 1,900 feet of twin concrete box culverts (each 9 feet by 10 feet).
  • Widening and deepening of Upper Llagas Creek and its tributaries.
  • Planting thousands of native plants over approximately 53 acres.
  • Creating plant, fish and wildlife habitat.
  • Providing public trail and recreation opportunities, at multiple locations.

Once completed, this project will provide a 100-year level of flood protection to urban areas of Morgan Hill, which means Llagas Creek should be able to withstand flooding in the event of a large and rare storm event that has a one-in-100 (1%) chance of occurring in any given year. 

Once the project improvements are certified by the Federal Emergency Management Agency (FEMA), South County residents and businesses who were previously located within the floodplain will have the option to purchase flood insurance. Currently, many residents and business owners are mandated to purchase flood insurance under the National Flood Insurance Program.

Photo caption: Valley Water Board Chair Nai Hsueh speaks at the Upper Llagas Creek Flood Protection Project news conference on Sept. 13, 2024.


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. The district 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 285 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.