Water transfers (Resource Management Strategy)

The California Water Code (CWC) defines a water transfer as a temporary or long-term change in the point of diversion, place of use, or purpose of use due to a transfer, sale, lease, or exchange of water or water rights. Temporary water transfers have a duration of one year or less (CWC Section 1725). Long-term water transfers have a duration of more than one year (CWC Section 1728).

Transfers can be between water districts that are neighboring or across the state, provided there is a means to convey or store the water. A water transfer can be a temporary or permanent sale of water or a water right by the water right holder, a lease of the right to use water from the water right holder, or a sale or lease of a contractual right to water supply. Water transfers can also take the form of long-term contracts for the purpose of improving long-term supply reliability.