Abundant water or a shortage in San Miguel

February 26, 2026

Greg Grewal

OPINION by GREG GREWAL

Is the community of San Miguel experiencing a water shortage or is there an abundance of ground water?

When applying for grant money, officials claim a shortage. But when it comes to new development and the increased revenue it could offer, San Miguel has plenty of liquid gold.

So what the heck is going on in San Miguel?

The San Luis Obispo County Planning Commission this morning approved adding to the San Miguel Community a project consisting of 181 homes, a park and commercial all on 43 acres. But wait, this project has issues with water supply, emergency rescue, fire safety, and yes – a hazmat problem.

So, how does the Planning Commission approve a project with use of basin water without approval of the groundwater sustainability agency, which in this case is the SLO County Board of Supervisors.

The project site was an airplane landing strip for a crop dusting operation for 30 or more years. Chemical substances were dumped and sprayed on land that includes three onsite wells located close to the runway and the abandoned aircraft hanger.

For now, let’s focus on the water issue. Two of the wells were never used or tested for pumping or contamination.

Regardless, for years, SLO County and San Miguel officials have claimed there is a shortage of water in the Paso basin.  

In Sept. 2018, a jury trial awarded defendants (SLO County, Paso Robles, Templeton Community Services District and San Miguel Community Services District) continued water from the Paso basin based on their usage 40 years ago.  The trial court granted the San Miguel Community Services District 177 acre feet of groundwater annually if the court found overdraft.

SLO County applied and received $7.6 million in Department of Water Resources grant funds to implement a groundwater management plan.  San Miguel CSD received about $250,000 of those grant funds.

The proposed 181 unit project is dependent on Paso basin groundwater.

So which is it? Is the Paso basin in overdraft conditions limiting the amount of water available for San Miguel CSD or is there plenty of water to supply an additional 181 unit residential project.

You can’t have it both ways.