# California Water Infrastructure Projects in 2026: A Comprehensive Overview

California enters 2026 facing the persistent challenges of climate variability, aging infrastructure, and growing demand for reliable water supplies. In response, state agencies, regional authorities, and local governments are advancing an ambitious portfolio of water infrastructure projects. This overview examines the major agencies involved, project types, budget priorities, and regional opportunities shaping California's water future.

## Major Agencies Driving Water Infrastructure

Several key institutions coordinate California's water infrastructure investments in 2026.

**The California Department of Water Resources (DWR)** remains the central agency overseeing statewide water management. DWR administers the State Water Project (SWP), manages flood control systems, and implements the Sustainable Groundwater Management Act (SGMA). In 2026, DWR continues to advance major initiatives including the Delta Conveyance Project and expanded groundwater recharge programs.

**The State Water Resources Control Board** regulates water quality and allocates water rights. The Board directs significant funding through the State Revolving Fund programs, supporting drinking water and wastewater improvements, particularly in disadvantaged communities.

**The California Water Commission** plays a strategic role in allocating funds from Proposition 1 and subsequent bond measures, particularly for water storage projects through the Water Storage Investment Program (WSIP).

**The U.S. Bureau of Reclamation** partners with state agencies on the Central Valley Project (CVP), coordinating federal water deliveries and infrastructure modernization. Federal-state collaboration remains essential, especially given infrastructure funding available through the Bipartisan Infrastructure Law.

**Regional agencies** such as the Metropolitan Water District of Southern California (MWD), Santa Clara Valley Water District (Valley Water), and numerous groundwater sustainability agencies (GSAs) execute local and regional projects that complement statewide efforts.

## Major Project Types

California's 2026 infrastructure agenda spans several categories, reflecting the state's diverse water challenges.

**Water Storage and Conveyance**

The **Delta Conveyance Project** stands as California's most consequential and controversial infrastructure undertaking. Designed to modernize how water moves through the Sacramento-San Joaquin Delta, the project aims to protect supply reliability against earthquakes, sea-level rise, and ecosystem constraints. In 2026, the project continues navigating environmental review, permitting, and financing discussions, with cost estimates exceeding $20 billion.

**Sites Reservoir**, a proposed off-stream storage facility in the Sacramento Valley, advances through final permitting and early construction phases. When completed, it would add approximately 1.5 million acre-feet of storage capacity, capturing water during wet periods for use during droughts.

Additional storage projects include expansions at existing reservoirs such as **Los Vaqueros Reservoir** and **B.F. Sisk Dam (San Luis Reservoir)**, where raise projects increase capacity and improve seismic safety.

**Water Recycling and Reuse**

Water recycling represents one of the fastest-growing sectors. The landmark **Pure Water Southern California** project, a partnership between MWD and the Los Angeles County Sanitation Districts, moves toward its construction milestones in 2026. When operational, it will become one of the largest advanced water purification facilities in the world, producing up to 150 million gallons daily.

Similarly, **Pure Water San Diego** continues its multi-phase construction, aiming to provide nearly half the city's water supply through purified recycled water by the mid-2030s. These "toilet-to-tap" projects, enabled by new direct potable reuse regulations adopted by the State Water Board, signal a paradigm shift in urban water supply.

**Groundwater Recharge and Management**

Under SGMA, groundwater sustainability agencies across the Central Valley implement recharge projects to replenish depleted aquifers. In 2026, managed aquifer recharge (MAR) projects, flood-managed aquifer recharge (Flood-MAR), and recharge basin construction expand significantly. These nature-based solutions capture storm runoff and floodwaters, directing them into underground storage.

**Desalination**

While more limited due to cost and environmental concerns, desalination remains part of the portfolio. Brackish groundwater desalination facilities, less contentious than ocean desalination, expand in inland regions. Coastal projects continue facing regulatory scrutiny following mixed outcomes for earlier proposals.

**Flood Control and Levee Improvements**

Climate-driven extreme weather has elevated flood management priorities. DWR advances the Central Valley Flood Protection Plan, funding levee repairs, floodplain restoration, and urban flood risk reduction. Projects in the Sacramento and San Joaquin valleys receive particular attention.

**Aging Infrastructure Repair**

The **Friant-Kern Canal** and **California Aqueduct** subsidence repair projects address land subsidence that has reduced conveyance capacity. These repairs restore critical water delivery infrastructure serving agricultural regions.

## Budget Priorities in 2026

California's water infrastructure funding in 2026 draws from multiple sources amid competing budget pressures.

**Proposition 4**, the $10 billion climate bond approved by voters in November 2024, provides substantial funding, allocating approximately $3.8 billion for water-related projects including drinking water improvements, groundwater management, water recycling, and dam safety. This bond represents a critical funding stream as 2026 sees implementation ramping up.

**Federal funding** through the Infrastructure Investment and Jobs Act continues flowing toward water storage, recycling, and rural water systems. The Bureau of Reclamation channels these funds toward Western water resilience projects.

**State budget appropriations** face constraints given California's fi