MWD executes first intra-agency water transfer, explores interstate exchange framework

MWD executes first intra-agency water transfer, explores interstate exchange frameworkThe Metropolitan Water District of Southern California has completed an unprecedented water exchange between two member agencies, setting the stage for a broader regional and potentially interstate transfer program.

The transfer between the San Diego County Water Authority and Western Municipal Water District is the first of its kind under MWD's new business model.

General Counsel Marcia Scully noted the deal utilizes an amended exchange agreement allowing San Diego to direct a portion of its exchange to other member agencies.

In April, the board will review an MOU with San Diego to explore a framework for interstate water transfers.

MWD is also advocating in Sacramento for drought mitigation funding specifically for the Sepulveda feeder.

The Metropolitan Water District of Southern California (MWD) has reached a milestone in its regional water management strategy, completing its first-ever water transfer between two member agencies. During a March 24, 2026, Executive Committee meeting, the Chair announced the successful transfer between the San Diego County Water Authority and Western Municipal Water District. The transaction marks the initial deployment of MWD's new business model, which was made possible following a settlement announced last year. General Counsel Marcia Scully clarified to the committee that the transaction was executed under an "amended exchange agreement." This regulatory mechanism permits the San Diego County Water Authority to redirect a portion of its designated water exchange to another member agency, creating a new avenue for regional supply flexibility. The Chair noted that this model holds potential solutions for the broader West and could eventually help other states benefit from long-term conservation efforts. Building on this intra-agency milestone, MWD is also evaluating broader geographic transfers. The General Manager reported that the board will consider an informational item in April regarding a Memorandum of Understanding (MOU) initiated by the San Diego County Water Authority. The MOU aims to identify and explore a framework for interstate water transfers. According to the General Manager, developing this program is intended to benefit both individual member agencies and the MWD region as a whole. In addition to advancing transfer frameworks, MWD leadership recently met with state officials in Sacramento to advocate for infrastructure funding. The delegation focused on securing state support for drought mitigation projects, specifically highlighting the Sepulveda feeder, alongside discussions on managing invasive golden mussels and pending state water legislation.