LADWP initiates land divestment in critical Owens Valley watershed

LADWP initiates land divestment in critical Owens Valley watershedThe Los Angeles utility has completed its first property sales to local business owners in Inyo County, executing a long-delayed policy to divest surplus assets in its primary water source region.

Three commercial properties in the City of Bishop were sold to lessees, marking the first transactions under a 2019 land management policy.

Staff have identified approximately 30 additional properties for potential sale to current lessees, subject to 'first right of refusal' requirements.

The move signals a shift in a relationship historically defined by the 'Water Wars' and aggressive land acquisition by the utility in the early 20th century.

CEO Janice Quinones listed 'sustainable and reliable local water supply' and expanded stormwater capture as top strategic priorities for 2026.

The Los Angeles Department of Water and Power (LADWP) has officially begun divesting surplus land in Inyo County, the headwaters of the Los Angeles Aqueduct. During the January 27, 2026, Board of Commissioners meeting, CEO Janice Quinones announced the sale of three properties in the City of Bishop, describing the event as a "huge milestone" for the department’s relationship with the region. The significance of the move is rooted in the contentious history of the watershed. Since the early 1900s, the utility has held vast tracts of land in the valley, originally acquired under the leadership of William Mulholland to secure water rights for the 230-mile aqueduct. That aggressive expansion, which prioritized urban growth over local agriculture, sparked the infamous "Water Wars," characterized by decades of litigation, sabotage of infrastructure, and deep-seated local resentment. The recent sales stem from a land management policy update approved by the Board in 2019, which allows the direct sale of land no longer required for operational needs to current lessees. Implementation was previously delayed by the COVID-19 pandemic and legal hurdles. "It provides the local people there an opportunity to own the land that they have their business on," stated Anselmo, a department staff member presenting on the item. He noted that the initial sales involved parking lots on the main road of Bishop and that the department has identified approximately 30 additional properties to offer to lessees. The process adheres to the Charles Brown Act of 1945, which grants existing lessees a first right of refusal. In broader strategic updates, CEO Quinones outlined the utility's priorities for 2026, which include achieving a "sustainable and reliable local water supply," expanding stormwater capture and recycled water programs, and continued investment in critical infrastructure. Additionally, the Board voted to approve a license agreement with the Mountains Recreation and Conservation Authority for public access and maintenance at the Franklin Canyon Reservoir.