- The Tribe secures 20,000 acre-feet of water annually with senior priority dates.
- Settlement includes up to $500 million in federal and $15 million in state funding.
- Agreement resolves disputes over groundwater, fees, and taxation on Reservation lands.
- Water delivery to Reservation residents will continue through current infrastructure.
- Congressional approval is required for final implementation of the settlement.
Thursday, June 5, 2025 — A major water settlement agreement has been reached between the Agua Caliente Band of Cahuilla Indians, the Coachella Valley Water District, and the Desert Water Agency, marking the resolution of a two-decade-long legal dispute over tribal groundwater rights in Southern California. The agreement, posted on the Tribe’s website
, outlines a shared vision for long-term water management in the region.
The Settlement Agreement confirms the Tribe’s right to 20,000 acre-feet of water per year, with senior priority dates of 1876 and 1877, corresponding to the establishment of the Reservation. These rights are grounded in the Winters Doctrine, a legal precedent affirming that the creation of a reservation implicitly reserves sufficient water for its future needs.
Congressional Approval and Funding Still Pending.
The agreement is not yet final. As the United States is a party to the settlement, it must be approved by Congress before it can be executed by the Department of the Interior. The Tribe and water districts are seeking $500 million in federal funding and $15 million from the State of California to implement the settlement. According to the FAQ provided by the Tribe, this funding will support water conservation efforts, stormwater capture, and infrastructure projects designed to strengthen the Coachella Valley aquifer.
Groundwater Fees Simplified for Local Users.
The agreement also addresses several points of contention. One involves groundwater fees. Under the new terms, groundwater users on Reservation lands will not face double charges. They will pay either the Tribe’s pumping fee or the water district’s replenishment assessment charge, but not both. Additionally, water will continue to be delivered to Reservation residents through the existing infrastructure of the Coachella Valley Water District and Desert Water Agency.
Tribal Tax Replaces County Tax on Reservation Lands.
Another notable component of the settlement resolves a long-standing dispute over the possessory interest tax (PIT). The agreement calls for new federal legislation to replace the County of Riverside’s PIT with a Tribal PIT. While local jurisdictions will continue to receive their share of the revenues, the portion currently directed to the County’s general fund will instead be retained by the Tribe. These funds will support government services, including water management and infrastructure within the Reservation.
Shared Aquifer Management to Continue.
Although the Tribe now has the authority to impose its own fees on third-party water use within Reservation trust lands, the parties have crafted the settlement to limit financial impacts on Coachella Valley water users.
Going forward, the Tribe, CVWD, and DWA will jointly manage groundwater resources under a Memorandum of Cooperation. The agreement underscores the parties’ commitment to safeguarding the aquifer for future generations.
As stated on the Tribe’s website, the settlement “enhances certainty and stability over the future of water management and increases supply reliability for Coachella Valley residents” (Agua Caliente Band of Cahuilla Indians, 2025).
The full agreement can be viewed at:
https://www.aguacaliente.org/documents/Agua_Caliente_Water_Settlement_Agreement.pdf.
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