The California Public Utilities Commission (CPUC) has approved California American Water’s plan to develop a desalination plant on the Monterey Peninsula. The approval, granted through adoption of the Phase 2 Demand and Supply Estimates, concludes that the region faces an annual water supply deficit of about 815 million gallons by 2050.

The decision clears the way for construction of the Monterey Peninsula Water Supply Project, which includes a desalination facility, aquifer storage and recovery, and the expansion of the Pure Water Monterey facility. Together, these measures are intended to offset supply constraints, including State Water Resource Control Board orders requiring reduced pumping from the Carmel River and a moratorium on new water connections until alternative sources are developed.

California American Water expects to break ground on the desalination plant by the end of 2025. Once operational, the project will provide a drought-proof supply to support households and businesses in the region, help lift regulatory restrictions on new water connections, and restore the Carmel River watershed.