Desert Water Agency awards $1.4 million contract for new Palm Oasis well

Desert Water Agency awards $1.4 million contract for new Palm Oasis wellThe California utility has greenlit the first phase of the Well 46 project to enhance supply resiliency, awarding the drilling contract to Southwest Pump and Drilling Inc. ahead of future equipping phases.

Southwest Pump and Drilling Inc. won the contract with a $1,397,783 bid, beating three other competitors for the 120-day project.

The current contract covers only drilling and casing; a subsequent contract will be required for the pump, motor, and electrical equipment.

The new well is expected to yield 3,000 to 4,000 gallons per minute, though nearby wells currently operate at around 1,300 GPM.

Board members noted incoming data centers in the area are planning to drill their own wells, raising questions about regional groundwater volume requirements.

On August 4, 2026, the Desert Water Agency (DWA) Board of Directors unanimously approved a contract to construct Well 46 in the Palm Oasis area of Palm Springs, California. The $1,397,783 contract was awarded to Southwest Pump and Drilling Inc., which submitted the lowest responsive bid among four competitors. The project, which has a total estimated cost of $1.5 million including third-party inspections, falls under a $1.75 million capital budget. DWA staff indicated the drilling phase is estimated to take 120 days after commencement. During the meeting, staff clarified to the board that this initial contract strictly covers drilling the bore and installing the casing. A separate design and procurement phase will follow to equip the well with a pump, motor, electrical equipment, and utility connections. The new well is intended to provide supply resiliency and operational flexibility for the Palm Oasis and Basin areas. Staff expect the well to be capable of producing 3,000 to 4,000 gallons per minute (GPM). While existing nearby wells—specifically Wells 17 and 43—are currently equipped to pump around 1,300 GPM, the testing of Well 46 will determine its ultimate operational capacity and necessary pump size. The well approval prompted board discussion regarding broader regional water demands, specifically concerning new data centers entering the area. Board members noted that these data centers are planning to drill their own wells to meet their operational volume needs, a development the agency is monitoring. In other business, the utility reported ongoing deliveries of State Water Project exchange water from Metropolitan to the Mission Creek subbasin, which commenced on July 7. The agency also noted its ongoing participation in federal legislative hearings regarding the Agua Caliente Band of Cahuilla Indians Water Rights Settlement Act.