Water Heist: How Corporations are Cashing in on California’s Water

In 1994, the largest contractors with the California State Water Project (SWP)—the state’s largest water delivery system—called the Department of Water Resources (DWR) into a closed meeting. The agreements that the SWP contractors and the state reached in that meeting led to a document known as the Monterey Amendments, named after the city where the meetings took place. These “amendments” to the SWP contracts included denying that the SWP delivers half of what the contractors say it does and effectively deregulating the SWP so that the contractors can sell contracts for precisely the half of the water that doesn’t exist. Sound confusing? It is. Welcome to the world of “paper water.”

In the same Monterey meetings, the state also agreed to give away an underground water storage facility that DWR spent $74 million purchasing and developing.