BAKERSFIELD, Calif. (KERO) — A water dispute involving a community more than 200 miles away could have real financial consequences for Kern County residents, with a $14 million debt at the center of the controversy.
For more than two decades, the Kern County Water Agency has supplied water to Diablo Grande, a 600-home development in Stanislaus County, through a complex state water exchange. According to the Kern County Water Agency, the Western Hills Water District in Stanislaus County stopped paying for those deliveries in 2019, and the unpaid bill has now grown to about $14 million.
I reached out to the Western Hills Water District for comment, but they hung up on me and then refused to answer my calls.
The Kern County Water Agency first threatened to cut off the water supply in June 2025 if Diablo Grande residents did not approve a water rate increase from $145 to $569. The water rate increase did pass, but left some residents unable to pay their bills.
In a statement released last week, the Kern County Water Agency said in part: "We recently read how Western Hills issued shut-off notices to certain residents for non-payment after 60 days and indicated they were following state law in doing so. They are over six years behind on payments to the Agency and we have a fiduciary responsibility to those we represent."
The agency says it has spent years negotiating with Western Hills, including proposals to reduce water volumes and significantly lower the overall debt. But the agency says those proposals were rejected, and that Western Hills asked to pay less than the actual cost of the water.
The agency says it can no longer provide water at a loss or shift the financial burden to Kern County residents.
A letter sent to the agency in July 2025 from attorneys representing Western Hills argued that the agreement does not allow Kern County to terminate the contract. The letter says the water district is working to sell or transfer some of its water rights to pay down the debt.
I also reached out to the California Department of Water Resources, asking if they were monitoring the situation or could explain how local rate payers could be impacted.
The DWR replied, saying: "DWR does not have a role in the negotiations of this particular issue. It is being handled by agencies at the local level."
As legal negotiations continue, Kern Water Agency officials say they cannot comment further as they are waiting for a response from Western Hills' attorneys.
For now, the $14 million question remains unanswered: whether Kern County will ever be paid back in full.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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