2026-27 Groundwater Production Charge-Setting Process

Valley Water will conduct its public process for setting FY 2026/2027 groundwater production 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. The existing 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. Other references related to the infrastructure and services provided are:

• Water Supply Master Plan
• Capital Improvement Program

The rate-setting process includes a series of opportunities for the public to provide input at an open house and public hearings in April.

Valley Water’s founding legislation (District Act) provides for the levying of groundwater charges to pay for the protection and augmentation of water supplies from those who produce groundwater for beneficial use. Charges may be collected from all those within a zone who own or operate water-producing wells, whether currently active or not. Revenue from groundwater production charges may be used to pay for and incur debt for certain activities, including the following:

Infrastructure
• Plan and construct improvements to infrastructure such as dams, pipelines, recharge ponds, drinking water and recycled water treatment plants, and pump stations
• Operate and maintain dams, pipelines, recharge ponds, treatment plants and pumping stations to help sustain the groundwater basins 

Water supplies
• Operate and maintain local reservoirs to capture water and fill groundwater percolation ponds
• Purchase imported water and develop local water supplies to replenish the groundwater basin

Water quality
• Monitor and protect groundwater from pollutants
• Ensure proper construction and destruction of wells to prevent contaminants from infiltrating the groundwater basin

The "2026-27 Protection and Augmentation of Water Supplies," or PAWS 2026 Report, presents the financial and water supply information that forms the basis for the wholesale water charges for the fiscal year 2026/2027. Valley Water released the PAWS 2026 Report on February 27, 2026, in compliance with the District Act and other legal requirements as part of its wholesale water rate-setting process. 

Valley Water has four groundwater benefit zones, ensuring ratepayers are grouped in a way that reflects the most recent and relevant data regarding the services and benefits received by well users. 

Operations, infrastructure, and rate structure are separate for each zone. The North County groundwater benefit zone is referred to as Zone W-2 and encompasses the Santa Clara Subbasin in North Santa Clara County. In the South County, the three groundwater benefit zones are as follows: Zone W-5, which encompasses the Llagas Subbasin; Zone W-7, which encompasses the Coyote Valley; Zone W-8, which encompasses areas in the foothills southeast of Uvas and Chesbro reservoirs.  For more information on the rate-setting process in your area:

• North County (Zone W-2)

• ​​​​​​South County (Zone W-5, Zone W-7, Zone W-8)