Three neighboring water agencies in the Sacramento suburbs are locked in a tense fight over who gets to tap a limited pool of pre-1914 surface water. Citrus Heights Water District has taken its wholesale supplier, San Juan Water District, to court, claiming that a string of short-term sales to Sacramento Suburban Water District dodges California’s environmental review rules. The clash puts a spotlight on the friction between guarding century-old surface water rights and easing pressure on the region’s stressed groundwater.
What the Lawsuit Says
Citrus Heights filed suit in late April, arguing that San Juan has repeatedly signed off on one-year transfers without conducting the kind of cumulative environmental analysis that the California Environmental Quality Act, or CEQA, can require. The district labels the approach “piecemealing,” saying each deal is being treated as a standalone action instead of part of a longer pattern.
As reported by the Citrus Heights Messenger, the complaint asks the court to undo the most recent transfer approval and to block future transfers until a legally sufficient environmental review is completed.
San Juan’s Defense
San Juan officials say the water on the table came from conservation actions that left the district with conserved pre-1914 supplies that can legally be transferred. They point to a prior negative declaration that, in their view, already found no substantial environmental impacts from short-term transfers.
According to San Juan Water District materials, the district proposed making up to 6,000 acre-feet available for a temporary transfer to Sacramento Suburban, with the goal of offsetting groundwater pumping in Sacramento Suburban’s service area. The district notes that the transfers are governed by Water Code sections 1011 and 1706 and says they will not change operations at Folsom Reservoir.
How Much Is at Stake
San Juan has told officials it can use about 28,400 acre-feet of pre-1914 water each year and that it reached that baseline in both 2020 and 2025. Sacramento Suburban, meanwhile, was allocated roughly 7,400 acre-feet last year and is expected to receive about 4,800 acre-feet in 2026.
Those figures, and broader reporting on the dispute, were detailed by The Sacramento Bee, which also quoted Sacramento Suburban’s general manager saying the district relied almost entirely on groundwater before the early 1990s and saw groundwater levels drop about two feet per year.
Citrus Heights’ Concerns
Citrus Heights officials argue that the short-term transfers are, in reality, part of an ongoing multi-year effort and that treating them as separate actions masks the combined impacts. They say the cumulative effects could hit water temperatures, aquatic habitat and groundwater recharge, especially in drier conditions.
In its Citrus Heights Water District “Protect Our Water” messaging and public statements, the district warns that reduced surface deliveries could force more groundwater pumping, alter well conditions and even change how tap water tastes for roughly 70,000 customers. Citrus Heights presents the dispute as a question of long-term regional stewardship rather than a series of one-off sales.
Legal Posture and Next Steps
The case is now in Sacramento Superior Court, where it appears on local board packets as Citrus Heights Water District v. San Juan Water District, Case No. 26WM000117. Sacramento Suburban has listed the litigation on its own meeting agendas.
According to Sacramento Suburban Water District board materials, the matter has been handled in closed-session legal briefings as officials consider potential settlement options. Leaders from the three agencies say they expect to meet this week to see whether they can negotiate a resolution before the court battle escalates.
What Officials Are Saying
Behind the scenes, tempers have been running a bit hot. San Juan directors sparred over an internal public records request after a series of information demands from Citrus Heights. At a May board meeting, one San Juan director voiced frustration and asked, “When is this going to stop?” as the dispute dragged on.
The districts are expected to sit down this week to discuss a possible settlement, and San Juan has said it is prepared to defend the transfers in court if talks fall apart, according to The Sacramento Bee. San Juan’s board president told colleagues he is hoping for a practical, long-term approach to emerge from the discussions.
For customers, any immediate changes are likely to be subtle, since the transfers are intended to reduce groundwater pumping in the short term rather than shake up day-to-day service. Over time, though, the legal and policy fight could set a precedent for how Sacramento’s patchwork of small water agencies manages scarce surface supplies in dry years. If the parties cannot reach a settlement, the court process could force a more comprehensive environmental review and delay transfers, potentially shifting the balance between surface and groundwater use for years to come.
