Montecito Water District Considers Sale of State Water Project Allotment
The Montecito Water District Board of Directors is considering selling a portion of its State Water Project allotment to Solstra Communities California LLC. This sale would provide funds for Montecito, which has increased its reliance on desalination, and secure water…
Santa Barbara Santa Maria San Luis Obispo, CA, September 27, 2026 — The Montecito Water District Board of Directors is currently evaluating a proposal to sell a portion of its allocation from the State Water Project (SWP). The potential buyer identified in discussions is Solstra Communities California LLC.
This proposed transaction comes as the Montecito Water District seeks to generate funds. The district has reportedly increased its reliance on desalination, a process that can be resource-intensive.
For Solstra Communities California LLC, the acquisition of a water allocation would be critical for its planned Solomon Hills development project. This large-scale development is slated to include up to 4,000 homes, along with other associated facilities. The proposed site for this project is located south of Orcutt.
Specific details regarding the amount of the State Water Project allotment being considered for sale, the financial terms of the potential transaction, and the timeline for a decision by the Montecito Water District Board of Directors were not immediately available. The current status of negotiations or the precise nature of the funds Montecito seeks are also not detailed in the summary information.
Story summarized from the original created by Janene Scully, Noozhawk North County Editor on www.noozhawk.com, see more information here.
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