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San Diego's Water Surplus Sparks West Interstates Deals

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San Diego County is offering its excess desalinated seawater to Western states grappling with drought, marking a potential shift in regional water cooperation. The region’s $1 billion desalination plant operates at one-third capacity, creating a surplus that could ease shortages in Arizona, Nevada, and Utah. Water officials emphasize that interstate transfers have never occurred and may require new federal regulations. San Diego’s utility, the San Diego County Water Authority, is negotiating with Arizona’s Central Arizona Project and Nevada’s Southern Nevada Water Authority, though details remain fluid.

The deal hinges on overcoming legal and logistical hurdles. Arizona’s water rights system, which prioritizes senior users, could complicate agreements, as Arizona holds junior rights that might be affected. Utah is exploring desalination partnerships with California, while Riverside County utilities have already secured San Diego’s water. Officials stress that regional cooperation is critical, as the Colorado River’s flow has dropped 20% in 25 years. San Diego’s surplus, however, comes at a cost: ratepayers have faced annual 14% water price hikes, and selling water could stabilize costs. Dan Denham, the authority’s general manager, frames the effort as both economically pragmatic and morally urgent, citing record drought conditions.

The broader implications extend beyond immediate relief. Failed negotiations could deepen the West’s water crisis, particularly for Arizona, which faces severe cuts under new federal rules. Meanwhile, water recycling projects like Pure Water Southern California offer alternative solutions, aiming to supply 500,000 homes. Success will depend on Congress and state consensus—a challenge given competing interests. For now, San Diego’s experiment in cross-state water sales tests whether collaboration can replace competition in an era of climate-driven scarcity. The outcome may redefine how arid regions manage dwindling resources.