CALIFORNIA 1995 WATER BANK PROGRAM - PURCHASING WATER-SUPPLY OPTIONS

In anticipation of a second consecutive critically dry year, the Calif ornia Department of Water Resources (DWR) organized the 1995 Drought W ater Bank Program. For the first time, DWR purchased water supply opti ons from willing sellers as insurance against a possible water-short y ear. These options could be used by Water Bank members if needed to me et critical needs. If the options were not needed, sellers kept the op tion payment. This paper provides a program manager's view of the plan ning, management, operations, and financing of the 1995 Drought Water Bank Program and shares the writer's experiences in securing options t o provide water supply certainty to California water agencies.