Arroyo Grande seeks to purchase state water amid legal issues
June 8, 2026
By KAREN VELIE
Amid uncertainty over the Lopez Lake water supply, the Arroyo Grande City Council is seeking to purchase state water, but it will take a vote of the people.
The Arroyo Grande City Council is scheduled on Tuesday to consider putting a measure to participate in State Water Project on the Nov. 3 ballot. If at least four city council members approve the proposal, it will appear on the General Election ballot.
Arroyo Grande receives the bulk of its water, about 61%, from Lopez Lake. Other sources include the Santa Maria Groundwater Basin and the Pismo Formation.
In 1990, Arroyo Grande voters approved Measure “A,” which bared the city from participating in the
California State Water Project without approval from voters.
On Nov. 8, 2016, Arroyo Grande voters approved a measure allowing the city to purchase State Water during local water emergencies.
In Aug. 2024, four environmental groups sued San Luis Obispo County in federal court, alleging that Lopez Dam operations violate the Endangered Species Act by harming steelhead trout in Arroyo Grande Creek. Arroyo Grande alone has already absorbed more than $1.6 in costs tied to the litigation.
The plaintiffs are seeking release requirements totaling roughly 5,800 acre-feet of additional water annually from Lopez Reservoir. County modeling reportedly shows that if the proposed release schedule had been in place during the 2020 to 2023 drought, Lopez Lake would have reached “dead pool,” meaning no water deliveries for more than a year to communities dependent on the reservoir.
While having access to State Water during droughts eases concerns, State Water has been unreliable during droughts.
“A supplemental water supply would diversify the city’s overall water portfolio and improve water supply reliability,” according to Tuesday’s agenda. “Participation in the State Water Project is not guaranteed and may require long- term financial commitments that have not yet been fully analyzed or publicly disclosed depending upon the final amount of participation.”






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