California invests $590 million to boost water reliability, upgrade sewer systems statewide

SACRAMENTO (UI) — California has launched eight major water infrastructure projects aimed at improving drinking water reliability, wastewater systems and climate resilience statewide. Together, the projects will add 2.9 billion gallons of clean water annually — enough to supply roughly 20,000 homes per year — while strengthening local systems from Irvine to Yucca Valley.

Backed by nearly $590 million in state grants and low-interest loans, the projects are part of Governor Gavin Newsom’s broader strategy to modernize water infrastructure across California. Funding was provided through the Clean Water and Drinking Water State Revolving Funds, which are managed by the State Water Resources Control Board.

“We’re dealing with hotter, drier, wetter, more volatile weather all at once — and California has to stay ahead of it,” said Governor Gavin Newsom. “That means continuing to harden and modernize our water systems so 40 million people can count on a reliable supply in the face of these extremes.”

State Water Board Chair E. Joaquin Esquivel said the investments reflect a commitment to support both large and small communities. “Major state and federal infrastructure commitments in recent years have enabled the board to offer significant levels of grants and low-interest financing that keep vital projects affordable,” Esquivel said.

Key water and sewer projects across California

• Irvine – PFAS removal: A new groundwater treatment system removes per- and polyfluoroalkyl substances (PFAS) for 38,000 people, funded by a $2.8 million state grant.
• San Luis Obispo – Wastewater plant upgrade: The $140 million Water Resource Recovery Facility project replaced aging equipment and improved treatment and disinfection for 46,000 residents.
• Monterey – Water recycling: The new Advanced Water Purification Facility will add 2,250 acre-feet of recycled water annually for 92,000 residents, supported by a $15 million grant.
• San Francisco – Wastewater expansion: The city completed the Headworks Facility at the Southeast Treatment Plant with a $112 million loan, increasing capacity for extreme weather and reducing odors.
• San Mateo – Sewer system upgrade: The Estero Municipal Improvement District finished a $552 million expansion of the wastewater treatment plant, backed by a $137 million loan, improving protection from sewer overflows for 160,000 residents.
• Antioch – Brackish water desalination: A $60 million loan funded the new desalination plant that treats water from the San Joaquin River for 110,000 residents, producing up to 6 million gallons per day.
• West Lake Tahoe – Drinking water treatment: The $19.7 million West Lake Tahoe Regional Water Treatment Plant now provides 1 million gallons per day of drought-resilient drinking water to 5,400 residents.
• Yucca Valley – Sewer pipeline expansion: The Hi-Desert Water District broke ground on the second phase of a 32-mile wastewater collection system, funded by $103 million in grants, connecting about 5,400 residents to sewer service.

Building long-term resilience

The projects align with Governor Newsom’s Water Supply Strategy, which includes accelerating the Sites Reservoir and Delta Conveyance projects to increase water storage and system flexibility during extreme weather.

“These investments represent the future of California’s water,” Newsom said. “They’re helping us prepare for climate extremes while ensuring every community can rely on clean, safe, and sustainable water for decades to come.”

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