Now, residents are breathing a sigh of relief.
The debt stems from a contract signed about 25 years ago, when Diablo Grande was envisioned as a much larger development. Although only about 600 homes were built, the district remained obligated to purchase far more water than the community actually uses.
"We will purchase water directly from the agency based on our actual needs, with an option to purchase water for additional development," Kovich said.
Now, residents are already seeing some relief. The base rate has dropped by about $100 per month, and Kovich said a new rate study could reduce it even further.
Resident Debbie Antigua remembers worrying her family could lose running water during the holidays.
Kovich said attracting new development will ultimately be key to lowering rates further by spreading the cost of the water system across more customers.
The district is expected to present its new rate study on July 18.
While water bills remain significantly higher than they were before the dispute, residents who spent months wondering whether their taps would run this summer are now seeing lower rates—and no longer facing the threat of losing water altogether.
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