2026-27 Surface Water Charge-Setting Process

Valley Water will conduct its public process for setting FY 2026/2027 groundwater and surface water charges (rates) in the Spring of 2026.

As Santa Clara County’s primary water resources agency, Valley Water ensures there is enough safe, clean water to sustain the region’s economy and quality of life. Major facilities that serve the county’s water needs, including the system of dams, pipelines and treatment plants, were built decades ago. Projects like the Anderson Dam Seismic Retrofit are necessary to ensure this system continues to operate efficiently and safely for many years to come. 

Water charges fund the infrastructure and services needed to maintain a reliable groundwater supply and to provide safe, clean water for North County residents, agriculture, and businesses. Valley Water remains in an era of investment, focused on upgrading, rehabilitating, and replacing water supply infrastructure that is 50 to 90 years old, while also making prudent investments in new water supply sources to serve the community for generations to come. Valley Water is committed to the responsible stewardship of financial resources entrusted to us. The recommended water charges are aligned with the costs of delivering the essential services on which the community relies. 

The rate-setting process includes a series of opportunities for the public to provide input at an open house and public hearings in April. The rate-setting process also includes a formal protest procedure where surface water users can object to the proposed increase in rates, which is explained in greater detail on the About the Protest Procedure insert. 

The amount paid to Valley Water to divert surface water for your use is comprised of a basic user charge, which is equivalent to the groundwater production charge, and a surface water master charge. The basic user charge helps pay for the cost to manage and augment surface water supplies. It’s set equal to the groundwater production charge because the use of surface water helps ensure sustainable groundwater supplies by reducing the need for pumping. The surface water master charge pays for costs that are specific to surface water users only, including the work to operate surface water turnouts, and maintain information on surface water accounts. The current and proposed rates are shown inside. 

California is facing a growing risk of more frequent and longer droughts due to changing weather patterns. To prepare for these challenges, Valley Water is taking a diversified approach to water supply planning. This includes expanding the use of purified water, investing in out-of-county water storage, and securing new water supplies. These efforts are guided by the Water Supply Master Plan 2050, recently adopted by Valley Water’s Board of Directors. The plan reflects current priorities, including the suspension of the Pacheco Reservoir Expansion Project, and provides a clear path for making smart, cost-effective investments in water storage and supply projects. 

Water will always be one of our most precious resources, and we are committed to its preservation and responsible management while ensuring the prudent use of public funds. Valley Water’s Board of Directors encourages everyone to make water conservation a way of life. A water conservation mindset paired with strategic infrastructure investments will help secure a sustainable and resilient water supply, now and into the future.