The Metropolitan Water District of Southern California and the San Diego County Water Authority announced Monday that they have settled a legal dispute spanning 15 years over the exchange of Colorado River water.
The agreement ends the long-standing litigation over fluctuating prices Metropolitan charged to the Water Authority to deliver water that the Water Authority purchased from the Imperial Irrigation District in 2003. The Water Authority also obtains water from the All-American and Coachella canals.
As part of the settlement, the Water Authority will pay a fixed price — starting next year at $671 per acre-foot — to Metropolitan for water transfers, though it will be adjusted annually for inflation.
The Water Authority will also be allowed to sell conserved water to Metropolitan or offer water to other agencies that are part of the MWD.
In a joint statement, leaders at both entities praised the conclusion of the years-long legal battle and said the settlement also “includes provisions to reduce the potential for future litigation, improve certainty in budgeting, and increase flexibility in efficiently managing water supplies.”
Water Authority Board Chair Nick Serrano said, “Ratepayers and water users across Southern California are the winners in this settlement. It provides a new revenue opportunity for San Diego, a new water supply opportunity for other communities, and greater budget certainty for the entire region.”
Metropolitan Board Chair Adán Ortega Jr. said, “For far too long, this legal battle sat at the center of Metropolitan’s relationship with the Water Authority. That era of conflict has finally come to an end and we can forge ahead, building a relationship based instead on cooperation and shared goals that will benefit the entire region.”
Community leaders from across San Diego County expressed their support for
the settlement following the Monday morning new conference.
“Settling litigation between Metropolitan and the Water Authority is a springboard for stabilizing rates through water exchanges and transfers,” San Diego Mayor Todd Gloria said. “I’m proud of the work our city delegates have done to get to this point and believe strongly that this is necessary to secure our future as a city and region.”
“We applaud the Water Authority and Metropolitan for ending this long-running litigation, recognizing that we’re stronger together. Our $262 billion economy runs on the supply the Water Authority provides,” said Mark Cafferty, president and COO of the San Diego Regional Economic Development Corporation. “Looking ahead, the creation of water markets in California and across the Southwest will provide rate benefits that businesses in our region need to grow and thrive.”
Updated at 5:29 p.m. June 2, 2025
City News Service contributed to this article.
