This US City Has So Much Water That It's Selling It

An American city has so much surplus water that it has started selling it. San Diego has started capitalising on its water supplies by selling thousands of acre-feet to outside agencies. Arizona and Nevada are pursuing a deal with the San Diego County Water Authority to tap millions of gallons of fresh water from its Carlsbad desalination plant, the largest in North America, according to The Wall Street Journal.

The move reflects San Diego's shift from years of drought-driven conservation to a position of relative abundance. Strong reserves, reduced demand and long-term planning have left the region with more water than it currently needs. Officials say the sales not only help optimise resources but also generate revenue while supporting other water-stressed areas.

Once federal and other approvals come through, Arizona and Nevada will be able to negotiate water-transfer agreements with the San Diego utility. No water will be physically transported; instead, the parties will exchange access rights to water sources. 

States would finance much of the estimated 56,000 acre-feet of water the desalination plant generates each year in return for San Diego's portion of the Colorado River. The deal could provide enough water for roughly 500,000 people. 

Water transfers are often used to make up for local shortages. More of these arrangements are now happening across state lines. Water agencies are also developing new supplies to trade, including through recycling wastewater or desalinating ocean water.

Nevada and Arizona are collaborating with the Metropolitan Water District of Southern California to construct a facility in Los Angeles County capable of treating up to 165,000 acre-feet of wastewater. 

Utah has also shown interest in investing in additional Pacific Ocean desalination facilities, hoping to secure greater rights to the Colorado River from California. In February, California's Democratic Governor Gavin Newsom wrote to Utah's Republican Governor Spencer Cox, saying that it was a good idea.

San Diego faced a five-year drought that concluded in 1992. At the time, the San Diego County Water Authority saw its allocation cut by a third, which was made up almost completely of imported supplies. 

Determined to avoid a recurrence, the authority poured billions into projects to gain water independence over the next three decades. The efforts are now yielding positive results.