Metropolitan board opens new path to increase region’s water supply reliability through local water exchanges

In a move to strengthen Southern California’s long-term water reliability, Metropolitan Water District’s Board of Directors this week approved a new framework that will allow local water agencies across the region to sell and purchase locally produced supplies among one another.

Through the Local Supply Exchange Framework approved by the board on Tuesday (Aug. 19), Metropolitan will help facilitate an exchange of local supplies between its member agencies – providing potential new water sources for some communities, and an opportunity for other communities to financially benefit from investments in supplies and demand management programs they have already made. The framework is one of many strategies included in the district’s Climate Adaptation Master Plan for Water and an important step in preparing the region for increasing climate and water supply challenges.

“For decades, Metropolitan has incentivized the development of local water projects through our Local Resources Program, fueling the growth of recycled water, stormwater and groundwater projects across Southern California,” said Metropolitan board Chair Adán Ortega, Jr. “This program represents our evolving approach to building a more resilient, flexible, and reliable water supply for Southern California. We are literally squeezing every drop from our local supply and demand management programs”

The approach emerged from Metropolitan’s ongoing Business Model review process, including months of collaboration with local water agency leaders across the region. The framework supports the growing interest among agencies to invest in and expand their own local water supplies while providing a way to share those benefits regionally.

Under the framework, one agency will produce and consume the local water supply and in exchange, Metropolitan will deliver an equivalent amount of water to another agency.

The local water itself doesn’t move physically between agencies – instead, Metropolitan would facilitate deliveries using its water and infrastructure. This collaborative approach ensures that the region’s overall water resources are being used in the most efficient way possible. Metropolitan will facilitate the exchanges through coordinated accounting and billing, while protecting system operations and water reliability. The price of the locally produced water will be arranged through an agreement between the two agencies exchanging the water.

“Climate change is making our water supplies more unpredictable. This kind of regional cooperation gives us more tools and flexibility to respond to droughts, adapt to changing conditions, and reduce pressure on imported supplies,” Metropolitan General Manager Deven Upadhyay said.

By approving this framework, Metropolitan continues to advance its commitment to local supply development, while maintaining reliable service across its 5,200-square-mile service area. The action also ensures that water exchanged under the framework is accounted for appropriately during times of shortage.

The Metropolitan Water District of Southern California is a state-established cooperative that, along with its 26 cities and retail suppliers, provides water for 19 million people in six counties. The district imports water from the Colorado River and Northern California to supplement local supplies, and helps its members to develop increased water conservation, recycling, storage and other resource-management programs.