Water is a precious commodity here on the Monterey Peninsula. Despite an increase in annual rainfall in recent years, there are still many restrictions in place when it comes to real estate and securing water credit when buying, selling or improving a property.
What is the Monterey Peninsula Water Management District?
In 1978, the Monterey Peninsula Water Management District (MPWMD) was enacted by California law to oversee the conservation and usage of water here on the Monterey Peninsula. They serve approximately 112,000 people within the cities of Carmel-by-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Seaside, Sand City, Monterey Peninsula Airport District and portions of unincorporated Monterey County including Pebble Beach, Carmel Highlands and Carmel Valley. MPWMD’s sources of revenue include property tax, user fees, water connection charges, investments, grants, permit fees and project reimbursements.
The Water Fixture Count
Whether you are buying a home, selling your home, or improving a property, understanding the way water credit works is an important aspect of real estate on the Monterey Peninsula. MPWMD assigns a “fixture count” to every parcel within their jurisdiction. This is usually done the first time a home is sold (after 1978), so because there are some homes that have not transferred title since that time, they may not have had a water inspection.
Once water management inspects the parcel for the first time and records the fixture count, it is a permanent record attached to that parcel. Different water features have different fixture counts assigned to them. A sink may count as 1 fixture unit, a washing machine may count as 2 fixture units, and a large oversized tub and shower may count as 3 fixture units. Every time the property title is transferred, MPWMD will come out to do a new inspection to insure the property complies with the fixture count assigned to the parcel.
Can I Install New Water Fixtures?
Making changes to water usage on a home is not as simple as just hiring a contractor and doing the remodel. Every new usage of water must be permitted. Currently, water management is not issuing permits for most intensification of residential usage. This means it can be difficult to get a permit to use more water than the home is currently allowed. There are a few exceptions — Ordinance 98 allows for any home built prior to 2001, that has only one bathroom, to add a second bathroom.
To get water for a real estate project in the Monterey Peninsula, you have 3 main options:
1.) You already have credit
The first step is always to call Water Management at (831) 658-5601. Give them your parcel number (or street address) and they will look up your property. They can tell you if you happen to have any extra unused water credit available on the parcel. They can also advise you about the options regarding your home and your ideas for a project.
2.) You can earn credit
There are ways to “free up” water credits in your home to be used elsewhere on the property. Again, you would want to contact water management at the number above. You can abandon an old usage — such as a permitted fountain or other water feature, a laundry room sink or bar sink — and apply that water credit towards installing a fixture elsewhere on the property.
Another way to earn credit for your next home improvement project is to replace old fixtures – such as an older toilet or dishwasher — with a new high-efficiency model. Again, contact water management first.
3.) You can purchase credit
If you don’t have credit, and can’t earn credit, there may be another option depending where you live. It may be possible to get more water for a project when buying, selling or improving a home by purchasing the water credit. There are several entitlements with water credit for sale (again, contact MPWMD first). For example, thanks to their Water Waste Project using recycled water from the golf course, the City of Pacific Grove now has water credit available for purchase. You can find details about the city’s Water Wait List here. There are also entitlements in the Seaside and Sand City areas.
Stay Informed
Whether you are buying a home, listing your home for sale on the market, or looking to do a home-improvement project, keep in mind the importance of water usage rights on the Monterey Peninsula. Your real estate agent should keep you informed about water issues, and should order the water inspection from MPWMD for you whenever considering a potential transaction.
If you have any questions about water as it relates the sale or purchase of a home, or any other questions about real estate, feel free to call, text or email anytime and I would be happy to discuss this with you.
There has been a persistent rumor about the real estate in the roadway still Rios subdivision. The property is the old club and burn down in 2010. People say that the land was sold to one person and the water credits were sold to another. Some people said it’s not possible because it’s illegal, others say it was the case that made it a reality. So does anyone know the answer to the question? Can you sell water credits for one property to someone who lives at another and leave the property without any water credits? Either way, please link to the legal precedent if you can. Thank you
Thank you for the question! Water credits are assigned by Monterey Peninsula Water Management to a parcel, and they stay with the parcel (can’t be sold or transferred). If the property sells, the water credits stay with the property.
However, water rights are different from water credits.
Here is an article on the topic of selling water rights:
homeguides.sfgate.com/water-rights-relate-real-estate-transactions
Here is a quote from the above article: “…States such as California give property owners whose lands lie atop water found in underground groundwater basins a right to draw water from those basins. … However, you may be able to sell the surface, subterranean stream and groundwater rights on your land separate from that land…”
You can contact water management with questions regarding water credit here:
https://www.mpwmd.net/
(831) 658-5601
Hope this helps!
Is it still possible to purchase water credits in Carmel-by-the-Sea? If so, through which resource can they be acquired?
That’s a great question Lana. There was at one time a water entitlement available to Carmel, created by donation of land by Clint Eastwood to the Big Sur Land Trust, back in 2015:
“80 acre-feet will soon be put on the market by Malpaso Water Company, which is owned by Clint Eastwood’s Eastwood Trust. The water comes from the Odello East property, a former artichoke farm at the mouth of the Carmel River. In exchange for conveying the 82-acre parcel to the Big Sur Land Trust last year, as well as retiring 45 acre-feet of the property’s water right, the state this summer approved Malpaso’s right to sell the property’s remaining 80 acre-feet of water to properties in Carmel and Carmel Valley…”
Source
You can see this entitlement rule, created by Monterey Peninsula Water Management District, at the following:
https://www.mpwmd.net/regulations/rules-regulations/
https://www.mpwmd.net/rules/Rule23.7.pd
However, that entitlement has since been depleted. So, to answer your question, to the best of my knowledge, there are no water credits for sale to homeowners in Carmel-by-the-Sea.
With that said, feel free to give me a call at 831-869-6117 and we can chat about various other ways in which Carmel homeowners can still obtain water credits.
Best, Nate
I saw two lots listed in Carmel by the Sea. I understand that these lots have no water credits. Is it possible to get water credits to build a small house on these lots?
Great question Phil! Thank you for reaching out. Sometimes there can be ways to obtain water credit for vacant lots. I will message you separately and we can discuss in more detail! Best, Nate
Hi Nate, could you provide me with more info for possible ways to obtain water credit for vacant lots?
Hi Hunter, thank you for reaching out, and great question! I sent you a separate email regarding your question. Best, Nate