Carlsbad's future quality of life depends on having a reliable and affordable supply of water. Prolonged drought, environmental problems and legal restrictions on the Colorado River and the Bay-Delta in Northern California have triggered the need to develop new water supplies, ideally ones that are locally controlled.

The Carlsbad Desalination Project is a 50-million gallon a day seawater desalination plant that will supply the San Diego region with approximately 10 percent of its drinking water needs. The project, being developed by Poseidon Resources Corp., will be the first large scale desalination plant on the West Coast and the largest of its kind in the Western Hemisphere. It will be located next to the Carlsbad power plant at the corner of Carlsbad Boulevard and Cannon Road.

Poseidon Resources Corp. is in the process of finalizing the project’s financing and working with the San Diego County Water Authority on the details of a water purchase arrangement. The project could be completed as early as 2013.

Recognizing the importance of securing a sustainable future water supply that is locally controlled, more than 10 years ago city officials took a leadership position in working with Poseidon Resources to develop a desalination project in Carlsbad.

The Carlsbad Municipal Water District, a subsidiary district of the City of Carlsbad, was the first water agency in San Diego County to negotiate a contract with Poseidon Resources to purchase water from the project. The landmark deal, called a water purchase agreement, cleared the way for the public-private partnership between the city and Poseidon Resources that enabled the project to become a reality. The terms of the agreement were intended to ensure the community would have a reliable, drought-proof water supply developed at no additional expense to the region's taxpayers.

Due to financial considerations and the regional nature of this important local water supply, Poseidon Resources in now in discussions with the San Diego County Water Authority on a possible new water purchase agreement.  Under such an agreement, the Water Authority would buy all the water from Poseidon and deliver it to water agencies, including the Carlsbad Municipal Water District, instead of water agencies buying it directly from Poseidon.

After more than a decade of planning and five years in the state's permitting process, the Carlsbad Desalination Plant has now received final approvals from every required regulatory and permitting agency in the state, including the California Coastal Commission, State Lands Commission and Regional Water Quality Control Board.  Poseidon Resources Corp. is in the process of finalizing the project’s financing and working with the San Diego County Water Authority on the details of a water purchase arrangement. The project could be completed as early as 2014.

The Carlsbad Desalination Project is estimated to cost about $700 million. This cost will be borne totally by Poseidon Resources, using a combination of private equity investment and Private Activity Bonds.  All costs of the desalinated water would be reflected in the price that the County Water Authority would pay to Poseidon Resources as defined in their water purchase agreement.

A large pipeline will connect the desalination plant to the San Diego County Water Authority's aqueduct. Once the water enters the water authority's aqueduct, it will mix with the imported water supply and be delivered to water agencies through the existing water pipeline system.