What Valley Water’s Decisions Mean for Our Water Future

When Valley Water announced that it would suspend development of the Pacheco Reservoir project, it marked a major shift in our region’s long-term water strategy. The decision raises important questions about how resources will be allocated moving forward  and my hope is that it means more focus on the Anderson Dam Seismic Retrofit, a project that is vital to both safety and water reliability here in Santa Clara County.

Pacheco Reservoir – The Paused Expansion

The Pacheco Reservoir expansion was designed to significantly increase storage capacity, providing a buffer against drought and climate-driven variability in water supply. At one point, the reservoir was envisioned as a solution to bolster water reliability for the entire region.

But large-scale infrastructure projects are rarely straightforward. Pacheco faced cost escalations, environmental hurdles, and permitting challenges. In August 2025, Valley Water’s board voted to suspend the project indefinitely.

For the community, the pause brings mixed emotions: on one hand, additional storage would have been valuable in times of drought. On the other, redirecting attention toward immediate safety needs may prove to be the wiser course.

Anderson Dam Retrofit – A Critical Priority

Anderson Dam, which created Anderson Lake, is the largest reservoir in Santa Clara County. It’s a cornerstone of our water supply and flood protection system. But seismic studies revealed serious vulnerabilities, leading to the draining of the reservoir and setting in motion a massive retrofit effort.

Latest Updates:

• In February 2025, Valley Water certified the Final Environmental Impact Report (EIR), clearing the way for construction.

• Construction is now scheduled to begin in early 2027, with completion projected around 2033. (Morgan Hill Times)

• Costs have risen by about $100 million, due in part to inflation and additional federal compliance requirements. (Morgan Hill Times)

While delays and rising costs are frustrating, the retrofit remains non-negotiable. Once completed, it will restore safe storage at Anderson Lake and protect thousands of residents downstream from potential seismic risk.

Balancing Storage and Safety

Pausing Pacheco and moving forward with Anderson highlight a fundamental tension in water planning: building new capacity versus fixing existing infrastructure. Both matter, but Anderson’s seismic retrofit addresses an urgent public safety issue and protects infrastructure we already depend on.

In my view, it’s essential that Anderson receives full funding, attention, and accountability, even if it means postponing new capacity projects like Pacheco in the near term.

What It Means for Our Community

In the short term, Anderson’s reduced capacity means more reliance on imported water and less flexibility during drought years. In the long term, however, completing the retrofit will restore critical storage, enhance safety, and provide a stronger foundation for the region’s water security.

These decisions don’t just affect water managers, they touch all of us who live, work, and raise families in Santa Clara County. Reliable infrastructure is one of the building blocks of strong communities and stable property values.

Looking Ahead Together

Valley Water’s decision to pause Pacheco leaves many questions about funding and priorities. My hope is that more of those resources and attention can be directed toward completing the Anderson Dam retrofit, since seismic safety and water security are so critical for our community.

Of course, only time will tell how Valley Water reallocates its efforts. But this is a conversation worth having.

💬 What do you think? Should Anderson Dam be the top priority now, or do we risk falling behind if projects like Pacheco stay on hold? I’d love to hear your perspective in the comments.