The San Diego County Water Authority expanded water sales to Riverside County, projecting $43 million in new annual revenue that could lower wholesale costs for Carlsbad.

The Water Authority announced Friday, Sept. 18, that Western Municipal Water District and Eastern Municipal Water District have each requested more water under 21-year transfer deals signed earlier in 2026. A separate agreement with the City of Burbank, approved in August 2026, adds to the total. Combined, the agency has committed to selling up to 37,500 acre-feet per year outside San Diego County through 2047.

The Carlsbad connection is direct. About 65% of what Carlsbad Municipal Water District customers pay on their water bills goes toward wholesale purchases from the Water Authority, according to a city utilities notice published April 21, 2025. The city identified the Water Authority as "the main driver of the water rate increase" behind a 49% rate hike the Carlsbad City Council approved earlier that year, as the San Diego Reader reported.

At a February 2025 council hearing on those increases, Shoshana Aguilar, senior management analyst with the city's utilities department, said the Water Authority had raised wholesale rates 14% the previous July. "That means it costs us 14% more to purchase water for Carlsbad customers," Aguilar said at the time.

The new revenue from Riverside County and Burbank sales is projected to lower future wholesale rate pressure on the Water Authority's 24 member agencies, including Carlsbad. Board presentations from the Water Authority's Sept. 17 meeting project more than $179 million in ratepayer benefits over the life of the agreements.

No per-household or per-district dollar estimate for Carlsbad has been released.

Under the expanded deals, Western Municipal Water District will purchase 20,000 acre-feet annually starting in 2027, up from 10,000. Eastern Municipal Water District will purchase 12,500 acre-feet, up from 10,000. Burbank's deal covers up to 5,000 acre-feet per year. The water will move through existing Metropolitan Water District of Southern California facilities, requiring no new infrastructure.

Water Authority Board Chair Nick Serrano said the agreements are "…creating $43 million in new revenue for the San Diego region, helping reduce rate impacts for our own ratepayers, and strengthening regional reliability at the same time."

The Water Authority said its Urban Water Management Plan confirms the region's diversified supply portfolio will meet San Diego County's needs through at least 2050, even during multiple dry years. The agency has invested $3 billion over three decades in desalination, conservation and storage, with new water purification projects coming online within two years.

Carlsbad City Councilmember Teresa Acosta also serves on the Water Authority board. No statement from Acosta or the Carlsbad Municipal Water District about the expanded agreements was available as of Saturday, Sept. 19.

Carlsbad has approximately 30,000 water customer accounts that stand to be affected by any future wholesale rate changes.