Using Extend simulation software, we analyzed the Santa Clara County,
California water supply. We determined that (1) the drought situation
(1987-1992) can be expected to occur two or three times per 100 years,
and (2) the supply will frequently not meet current annual demand and
will fall far short of projected demand by 2020. We evaluated alterna
tive courses of action. Using our analyses, the Santa Clara Valley Wat
er District (1) negotiated a clause that saved $4 million on water con
tracts during 1992-1993, (2) evaluated using a storage facility in ano
ther California county, and (3) started preliminary engineering and en
vironmental studies on a new reservoir.