Most of La Habra’s city water comes through a mutual water company. On October 19, 2026, staff asked the City Council and Utility Authority to approve buying more shares in that company. For you as a La Habra owner or buyer, the reason is straightforward: additional shares could reduce the Authority’s costs for water purchased above its existing allocation or from imported supplies. The report does not say your water bill would change.
This is general information, not legal, tax or investment advice.
As of October 22, 2026, minutes were not yet posted and the October 19 vote outcome was not verified; check the city’s minutes through its agenda portal.
Where does the city’s water come from?
La Habra’s city water comes from California Domestic Water Company, the La Habra Groundwater Basin, and the Municipal Water District of Orange County, according to the staff report.
California Domestic Water Company, or CDWC, supplies about three quarters. The local groundwater basin provides about one fifth, and the Municipal Water District of Orange County, or MWDOC, supplies the smallest share. Combined deliveries averaged 7,712.33 acre-feet annually over the past three fiscal years.
Start with your own water bill to identify who serves the address. The report does not establish that every La Habra home receives city water service. The Hemet water provider guide explains provider identification in another city.
Say a buyer reviewing a La Habra home wants to understand how the proposed share purchase relates to the property’s water service. The buyer could identify the provider on the property’s water bill, since the report does not establish that every home receives city water. If the bill identifies city service, the report describes a supply drawn from CDWC, local groundwater and MWDOC. The proposed purchase concerns the Utility Authority’s access to entitlement water and its supply costs; it does not establish a change in the buyer’s household bill.
What was the council asked to approve?
The City Council and Utility Authority were asked to authorize negotiations and purchases of CDWC common stock within stated price and spending limits.
The October 19 agenda lists the acquisition of water property rights under the joint City Council and Utility Authority section. The staff report recommended authority to negotiate with shareholders at up to $20,000 per share and make bulk purchases totaling no more than $100,000.
Those are the requested limits. They do not establish that a purchase occurred, how many shares changed hands, or what price was paid.
What does a water company share provide?
A CDWC share provides an annually determined allocation of water from the Main San Gabriel Basin, according to the report.
That entitlement is a different property interest from ownership of the underlying water right. The Main San Gabriel Watermaster sets the annual allocation, which has traditionally ranged from 1.3 to 1.9 acre-feet per share.
For fiscal year 26-27, the allocation is 1.6 acre-feet per share. La Habra holds 2,582.25 shares, allowing it to buy 4,131.6 acre-feet of entitlement water that fiscal year.
CDWC is a mutual water company owned by shareholders. The report identifies La Habra, Brea, Suburban Water Systems and other entities as its shareholders. It says La Habra would likely hold additional shares for the foreseeable future and retain its position as the company’s second-largest shareholder.
Why would additional shares reduce supply costs?
Additional shares could give the Utility Authority access to more entitlement water, which costs less than CDWC water purchased above its allocation or imported MWDOC water.
The report lists these supply costs per acre-foot:
- La Habra Groundwater Basin: about $200.
- CDWC entitlement water: $438.
- CDWC over-entitlement water: $1,326.
- MWDOC water: $1,420.
At certain times, demand exceeds the available CDWC entitlement and local groundwater supply. The city then purchases over-entitlement CDWC water or imported MWDOC water.
Using a share valuation of $16,910, staff estimated approximately $1,496 in annual Authority savings per share and a break-even point of approximately 11.3 years. That valuation differs from the proposed maximum purchase price of $20,000.
The report says there is no General Fund impact. Adopted water funds cover up to five shares at no more than $20,000 each; Water Enterprise Reserves cover more than five.
What does this mean for a home sale?
The proposal concerns the Utility Authority’s water supply costs, and the report makes no statement about changes to customer bills or rates.
A supply-cost estimate does not provide a new household bill amount.
Say an owner preparing to sell reads that each additional share could save the Authority approximately $1,496 annually. The owner would have no basis in this report to describe that figure as a household saving. Instead, the owner could check the property’s water bill for the provider. A buyer could also check the city’s minutes before treating the proposed purchase as completed.
The California seller disclosure guide provides separate reading on sale paperwork. The Fallbrook new-owner water bill guide shows what a new owner’s water bill setup looks like elsewhere.
Why do some other entities hold shares?
Some other entities hold shares because they were once served by CDWC before their service areas were annexed to La Habra.
The report explains that, after annexation, water service was no longer contingent on owning CDWC common stock. This created a market for holders wishing to sell and parties wishing to buy.
That history does not establish that shares accompany your house or that you personally hold any. A reader who thinks they hold shares can ask the company or their own adviser. The city’s proposed purchase limit also does not establish what a private share would be worth to a particular seller.
Which water rules and rebates can owners check?
Owners can check the city’s permanent water restrictions and residential rebate page for the rules and listed programs.
The permanent restrictions apply at all times under La Habra Municipal Code 13.40.070. The page calls these 15 permanent restrictions part of the city’s Water Shortage Contingency Response in chapter 13.40.
They prohibit landscape irrigation during or within forty-eight hours after measurable rainfall. Lawn, landscape and turf watering is prohibited between nine a.m. and six p.m., with stated exceptions for hand-held cans or buckets, hoses with a self-closing nozzle, and brief irrigation adjustment or repair.
Leaks must be repaired in a timely manner. Runoff beyond incidental amounts is prohibited. Using water to clean, fill or maintain decorative fountains or ponds is prohibited unless the water is part of a re-circulating system. The page lists penalties starting at $100 and reaching $500 per violation. For repeat offenders, the city “reserves the right to install a flow restrictor or disconnect service.”
The residential rebate page lists turf removal, irrigation equipment, rain barrels, cisterns and qualifying appliances. Rebates are subject to availability. Ask MWDOC at (714) 963-3058 or visit Orange County Water Smart about availability. The city’s residential rebate page also lists 562-383-4170 as the Water / Sewer Division contact.
The short version
Staff recommended buying additional CDWC shares to reduce the Utility Authority’s supply costs, but the vote outcome remains unverified.
Check the city’s minutes for the decision and your water bill for the provider serving your address. The report offers no basis for promising a change in customer rates.
Preparing for a sale? Start with the home value tool.
Common questions
Where does La Habra's city water come from?
The staff report identifies three sources: California Domestic Water Company, the La Habra Groundwater Basin, and the Municipal Water District of Orange County. Check your water bill to see who serves your address.
Did the council approve buying shares?
The outcome was not verified. As of October 22, 2026, minutes were not yet posted. Check the city's minutes for the outcome.
Would buying shares lower customer water bills?
The report estimates savings to the Utility Authority's water supply costs. It does not say customer bills or rates would change.
Does a California Domestic Water Company share mean owning a water right?
The report says each share provides an annually determined water allocation and is a different property interest from owning the underlying water right.
Where can owners ask about residential water rebates?
The city's residential rebate page directs readers to the Municipal Water District of Orange County at (714) 963-3058 or Orange County Water Smart. Rebates are subject to availability.
