TUD Secures Long-Term Water Supply Agreement with U.S. Bureau of Reclamation by Tuolumne Utilities District Nov 13, 2026 Member Submitted News SONORA — Tuolumne Utilities District (TUD) has reached a historic milestone in its decades-long effort to strengthen and diversify the community’s water supply through a long-term water service agreement with the U.S. Bureau of Reclamation (USBR) for Central Valley Project water from New Melones Reservoir. The agreement provides access to up to 6,000 acre-feet of water per year from New Melones Reservoir, including 2,500 acre-feet for TUD and 3,500 acre-feet for the Chicken Ranch Rancheria. TUD’s allocation includes 500 acre-feet for municipal and industrial use and 2,000 acre-feet for agricultural use. The Chicken Ranch Rancheria allocation includes 600 acre-feet for municipal and industrial use and 2,900 acre-feet for agricultural use. “This is a historic achievement for TUD and the community we serve,” said Don Perkins, TUD General Manager. “For decades, generations of local leaders have worked toward securing access to water from New Melones. This agreement provides another tool to enhance the reliability and resilience of our water supply and helps ensure that future generations have options as conditions and community needs change.” A Goal Decades in the Making Securing surface water from New Melones is a top priority under TUD’s strategic goal to “Enhance and Improve Water Security”. TUD and its predecessor agencies have sought to obtain a long-term water supply from New Melones Reservoir for nearly 60 years. Since 1968, when TUD’s predecessor filed a protest against the USBR’s water right applications to construct New Melones Dam and Reservoir (based in part on the County of Origin Act, adopted in 1943), TUD has been seeking a contract for water out of New Melones. The efforts resulted in three draft contracts, but none were ever executed until today. In 2019, TUD formally requested a long-term water service contract from USBR. In January 2023, TUD and Chicken Ranch Rancheria entered into a cost-sharing agreement to jointly pursue the contract. Since then, the District and Tribe have worked closely to complete a water needs assessment, environmental compliance and the legal work necessary to advance the agreement. The resulting water needs assessment, which was submitted to and approved by USBR, demonstrated a combined need for up to 6,000 acre-feet annually from New Melones Reservoir. “This agreement represents years of persistence, partnership and careful planning,” Perkins said. “Water agencies have to think generations ahead. Securing an additional water supply today gives our community greater flexibility to meet the challenges of tomorrow.” Strengthening Water Supply Reliability The agreement does not replace TUD’s existing water supplies. Rather, it provides another important source within the District’s overall water supply portfolio and advances TUD’s long-term strategy to improve water security. TUD’s environmental documents specifically identify increasing water supply reliability within the District’s existing service area as one of the purposes of the long-term water service contract. Under the project, TUD will have access to up to 2,500 acre-feet per year for use within its existing service area, while the Chicken Ranch Rancheria will have access to up to 3,500 acre-feet per year. “Reliable water is fundamental to public health, fire protection, homes, businesses, agriculture and our local economy,” Perkins said. “Having another water supply available to our community strengthens our ability to plan responsibly for the future and adds resilience to the system our customers depend on every day.” Extensive Environmental Review Completed Before entering into the long-term agreement, TUD completed the environmental review required under the California Environmental Quality Act (CEQA). Environmental Science Associates prepared an Initial Study evaluating potential impacts across 17 environmental resource categories and concluded that the project would not result in significant environmental impacts. The public review period for TUD’s proposed Negative Declaration ran from September 11 through October 13, 2026, and no public comments were received. The TUD Board considered and adopted the Negative Declaration on October 27, 2026. The federal environmental review required under the National Environmental Policy Act had also been completed by USBR. The final agreement, M&I and Irrigation Contract No. 25-WC-20-6370, was subsequently presented to the TUD Board for authorization. The contract provides for USBR to furnish and deliver project water to TUD for municipal, industrial and irrigation purposes. The agreement was executed at the USBR regional office in Sacramento on November 12, 2026. Partnership Makes the Milestone Possible TUD recognizes the many partners who helped bring this long-term effort to fruition, particularly the Chicken Ranch Rancheria, which has worked together with the District through the current contract effort. “This milestone belongs to everyone who has worked over the years to strengthen the future of water in Tuolumne County,” Perkins said. “We are grateful to the Bureau of Reclamation, the Chicken Ranch Rancheria, our current and former Board members, District employees, consultants and community partners whose persistence and collaboration helped carry this effort across the finish line.” “Most importantly, this is about our customers and the generations who will call Tuolumne County home long after us,” said Jeff Hollis, TUD Board President. “This agreement gives TUD another option to help protect the water reliability and quality of life our community depends upon.” About Tuolumne Utilities District Tuolumne Utilities District provides water and wastewater services to communities throughout Tuolumne County. The District is committed to protecting and responsibly managing the region’s water resources while providing reliable, high-quality services and planning for the community’s long-term water future.
