April 2, 2025
VIDEO: Weekly California Water Market Report
Looking Back on March and Forward to April
March Market Activity
Last week a one-year transfer of State Water Project (“SWP”) 2024 carryover supplies was approved. The transfer occurred between two agricultural water districts located South of the Delta (“SOD”) for just over 2,000 AF priced at $185/AF. This transfer marks the end of known transfers of carryover supplies.
The Central Valley Project (“CVP”) announced an increase in allocations to SOD Contractors. In the Friant Division, Class 1 contracts are under a 100% allocation while Class 2, the next amount of available water supply, remains at 0%. The SOD Agricultural allocation was increased to 40% matching the allocation increase for the SWP made earlier last week.
March saw five spot market transactions occur, totaling 8,525 AF. Each transaction took place between SOD market participants and prices ranged from $185/AF to $375/AF.
March activity between 2020 and 2024 SOD saw an average of 5 transactions occurring each year with prices ranging from $75/AF in 2018 to $1,680/AF in 2014.
Compared to 2024, a higher volume of water was transferred at a higher overall value.
No transactions occurred NOD in 2025. On average, two NOD transfers occur each year in March, with prices ranging from $60/AF to $450/AF.
Market activity NOD has been minimal in the last three years, while allocations NOD are 100% and reservoirs are full.
April Market Activity
In April, market participants begin transferring allocated supplies within their regions.
In the NOD market, sellers are a small group of water providers with large, reliable water supplies. These providers regularly have surplus supplies early in the season, and they are able to transfer to market participants who need supplemental sources.
With high allocations and full reservoirs, market activity NOD has been limited. Discussions with regular NOD suppliers indicate it is unlikely to see transfers NOD in 2025 as wet conditions persist.
In the SOD market, market activity is prominent in the Tulare Lake Basin where districts with large agricultural demands and individual landowners purchase supplies to meet their agricultural demands for the year. Urban transfers are rare at this point in the year, typically occurring in the late summer.
Under the current allocation, market activity is expected to be similar to 2024, when a small number of transactions occurred at volumes averaging 1,830 AF and prices averaged $260/AF.
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