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Published December 31, 2025 at 7:00 PM
Updated April 4, 2026
Site work and addition to a water / sewer project in Gilroy, California. Design plans call for the addition of a water / sewer project.
https://valleywaternews.org/2025/12/29/an-overview-of-valley-waters-annual-capital-improvement-program-3/ Every year, Valley Water develops its Capital Improvement Program (CIP) Five-Year Plan, which is a rolling annual plan for funding the projects needed to maintain a strong and reliable water system for Santa Clara County. The plan includes project descriptions, estimated schedules, costs and planned funding sources for these critical infrastructure investments. The CIP helps us prioritize long-term investments such as repairing aging systems, enhancing flood protection and planning for climate change challenges. The plan also aligns our efforts with local agencies to support coordinated planning for the region. Together, these projects work to ensure that our water supply remains clean, dependable, and sustainable for years to come. In May 2025, the Valley Water Board of Directors approved the CIP FY 2026-30 Five-Year Plan. This plan includes 76 projects estimated to cost $10.32 billion. The projects focus on improving water supply, protecting against floods, restoring the environment, and upgrading technology. On Aug. 26, 2025, the Board of Directors suspended work on the Pacheco Reservoir Expansion Project, which had been included in the CIP. Valley Water remains committed to exploring sustainable, cost-effective ways to secure and protect the region’s water supply. As we look ahead, this commitment is reflected in how we evaluate and refine the CIP each year. Our planning process is continuous, transparent and designed to adapt to changing conditions. Each summer, Valley Water reviews every active and proposed capital project. Staff updates plans to reflect any changes to cost, schedule, or scope. New project ideas are also considered based on several factors, such as: The need to repair or replace aging infrastructure to protect public health and safety The expected lifespan of existing systems Available funding and resources The urgency of the work This review process starts in July and continues into spring. Throughout the year, the Board has multiple opportunities to provide direction, helping shape the CIP Draft and Final Five-Year Plans. On Jan. 13, 2026, Valley Water will hold a Board work-study session to review the CIP Preliminary Five-Year Plan and Preliminary Groundwater Production Charges. This helps ensure the projects align with the Board’s priorities. On March 10, 2026, staff will present the CIP Draft FY 2027-31 Five-Year Plan for Board approval, after which it will undergo a 60-day public review period. Additionally, Valley Water will also share the Draft with local cities and the County of Santa Clara for consistency with their general plans. On April 28 and 29, 2026, Valley Water will hold a public hearing and formally receive community input. The Board will close the hearing on May 12, 2026, when staff presents the CIP Final FY 2027-31 Five-Year Plan and the FY 2027-28 biennial budget for approval. The CIP Committee, made up of three Board members, meets monthly to discuss project priorities and provide detailed feedback. These meetings are open to the public—visit our Board Committee’s webpage to see upcoming dates. Ultimately, the CIP is about more than projects—it’s about protecting our water future. Each investment supports clean, reliable water, healthy ecosystems, and flood-safe communities. If you’d like to explore the full plan or see last year’s version, visit our CIP webpage. Photo caption: An aerial picture of the work taking place at Anderson Dam in October 2025, which includes completing a new outlet tunnel and diversion outlet structure. --------------------------------------------------------- The Santa Clara Valley Water District are planning the construction of a dam and reservoir near Pacheco Pass to serve their 1.9 million Silicon Valley residents and avoid water shortages during future droughts. As of August 2025, the project has been delayed due to opposition. The design phase is at 30%. The project requires permitting and water rights. The project requires funding approval. A firm bidding and construction schedule has not been disclosed. *Project information, including timeline and contacts, has been obtained through public sources. The content management team continues to pursue additional details; however, the contact(s) listed have yet to disclose or confirm any information. Inquiries should be directed to the contact(s) listed.
Design
Water / Sewer
$2,700,000,000.00
Public - City
Addition, Site Work
Plans and Specifications are not available for this project. If that changes, they will be made available here.
Trades Specified
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March 5, 2029
To Be Determined, Gilroy, CA
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