This additional source water is needed to make up for water now taken from the Carmel River, which must stop by December 31, 2016, by Order of the California Water Resources Control Board. Under the Order, Cal-Am must reduce its diversions of water from the Carmel River annually and terminate all diversions by no later than December 31, 2016. This means a reduction of more than two thirds of the water that Cal-Am currently draws from the Carmel River every year

The Settlement Agreement is between Cal-Am, Marina Coast Water District, Monterey County Water Resources Agency, Monterey Water Regional Pollution Control Agency, the Surfrider Foundation, the Public Trust Alliance, and Citizens for Public Water. Monterey County Water Resources Agency will own, construct, operate, and maintain the source water wells and raw water conveyance facilities to the desalination plant. Marina Coast Water District will own, construct, operate, and maintain the desalination plant and the product water conveyance facilities to the delivery point, which then becomes Cal-Am’s intake point. Cal-Am will own, construct, operate, and maintain the pipeline, conveyance, and pumping facilities necessary to deliver the water to its customers. The Monterey Regional Water Pollution Control Authority will own, operate, and maintain the outfall for return of the brine to the sea.