For the Water Authority, Fiscal Year 2025 was about building trust with our communities and delivering improved results for our region. To achieve those goals, we had to stop doing things the way they have always been done, all of which is highlighted in the FY2025 annual report.

To learn more about the achievements and impact of the Water Authority in FY2025, click here to read the annual report in full. Below are highlights from a significant year in Water Authority history.

Water Authority, MWD End Lengthy Legal Dispute

Signaling a new era of collaboration, the San Diego County Water Authority and the Metropolitan Water District of Southern California in June announced the settlement of a 15-year legal dispute over rates and the terms of an exchange agreement between the agencies.

At a news conference in San Diego, leaders from two of the state’s largest water agencies hailed the conclusion of all pending litigation, highlighting their commitment to fostering greater teamwork on a range of issues that affect nearly 19 million Southern California residents. The settlement dismissed all pending appeals. It included provisions to reduce the potential for future litigation, improve certainty in budgeting, and increase flexibility in efficiently managing water supplies.

Starting in 2010, the Water Authority repeatedly challenged the price Metropolitan charged for transporting its water, with both sides winning important legal judgments over more than a decade.

Under the settlement, the Water Authority will pay a fixed price to Metropolitan for delivery of the exchange water, adjusted annually for inflation. The price is no longer tied to Metropolitan’s rates, which was a source of dispute and litigation. In addition, the Water Authority is able to offer that water to other Metropolitan member agencies and to Metropolitan.

“This agreement will allow San Diego to take advantage of our past investments in diverse water supplies to benefit regional ratepayers while addressing water reliability challenges more broadly,” Water Authority General Manager Dan Denham said. “We look forward to building on the foundation of collaboration laid today.”

Partnerships Propel Future Wave of Water Workforce

To expand access to jobs in the water industry and address critical workforce needs, the Water Authority in February hosted a first-ever tour of the region’s water education programs, attended by educators and water professionals from across Southern California. The tour highlighted the region’s statewide leadership role in workforce development, in partnership with the Water Energy Education Alliance, San Diego County Office of Education, Cuyamaca College, and the Metropolitan Water District.

The Education to Workforce Tour supported early career exploration to ensure a steady talent pipeline for the water industry during a critical workforce transition period. An estimated, one-third of water utility operators will become eligible to retire in the next decade – what some have called the industry’s silver tsunami.

During the fiscal year, the Water Authority also won a grant from The Hans and Margaret Doe Charitable Trust that will advance workforce development efforts through continued collaboration with the San Diego County Office of Education.

Water Supplies Secure as Dry Times Return

As drought crept across the Western U.S. in early 2025, the Water Authority ensured sufficient water supplies to meet regional water demands. While the water year got off to a wet start, by summer 2025 it was clear that La Niña conditions were growing, along with the ever-present threat of making the Southwest hotter and drier.

Between the seawater desalination plant in Carlsbad, the nation’s largest water conservation-and-transfer project, and a laser focus on maintaining critical water infrastructure, the San Diego region remained insulated from ongoing drought conditions on the Colorado River and smaller snowpacks that continue to be impacted by climate change.

Water Authority Wins Golden Watchdog Award

At the 2024 Golden Watchdog & Fleece Awards hosted by the San Diego County Taxpayers Association, the Water Authority won a Golden Watchdog Award for deploying “Scanny,” an innovative pipeline inspection device. Designed and patented by Asset Management Manager Martin Coghill, this high-tech surveillance tool uses lightweight cameras on a mobile chassis to safely monitor large-diameter pipelines (4-9 feet) without requiring specialized rope and rigging support teams.

“Scanny” paid for itself in just two deployments compared to hiring outside specialists. With 308 miles of transmission pipelines across hilly terrain, the Water Authority inspects about 30 miles annually. Proactive maintenance can extend pipeline lifespans by more than 50 percent, providing significant cost savings. Replacing one mile of large-diameter pipeline costs about $10 million versus approximately $100,000 in maintenance per decade.