KCWA RENEGOTIATED CONTRACT EXECUTED
July 24, 2026
The Kern County Water Agency (KCWA) has signed the revised wholesale water agreement. Today, the Western Hills Water District (WHWD) Board of Directors voted to approve the agreement, and I have officially signed it on behalf of the District, making the revised wholesale water agreement fully executed.
This agreement represents a major milestone in resolving one of the most significant challenges facing our District. For years, many believed the original wholesale water contract was impossible to renegotiate. Through persistence, collaboration, and countless hours of work, we have reached an agreement that secures a long-term wholesale water supply while eliminating approximately $14 million in outstanding debt associated with the previous contract.
It is important for the community to understand that eliminating this debt does not mean the District will receive water at no cost. The District will continue to pay for the water it uses, increase the financial reserves to purchase and store banked water, and, if necessary, pay drought-related surcharges should statewide water shortages occur if sufficient banked water is not available.
The most important outcome is that our community now has a secure and sustainable wholesale water supply under a significantly improved contractual framework.
At the District’s regular Board meeting on August 13, I will present a detailed overview of the years-long effort that led to this agreement. I will explain the background of the negotiations, how the revised contract works, and what it means for the future of our community.
While this accomplishment is a significant step forward, there is still much work ahead. Restoring the Western Hills Water District to long-term operational and financial strength will require continued dedication and responsible management over the coming years. Nevertheless, this agreement provides a solid foundation upon which we can continue rebuilding the District and the Diablo Grande community.
Finally, I would like to sincerely thank the residents of Diablo Grande for your patience, understanding, and continued support throughout this challenging process. Your encouragement has been greatly appreciated, and we remain committed to maintaining transparency and open communication with our community.
As always, my door is open. If you have questions or would like to discuss any District matter, please do not hesitate to reach out to me.
Respectfully,
Mark Kovich
Homeowner/Resident/Volunteer
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