In a landmark decision marking a significant turning point in the management of regional groundwater resources, the Agua Caliente Band of Cahuilla Indians has reached a comprehensive water rights settlement agreement with the Coachella Valley Water District (CVWD) and the Desert Water Agency (DWA). The groundbreaking agreement resolves two longstanding lawsuits, promising a future of water stability, cooperation, and enhanced sustainability for the entire Coachella Valley.
The agreement, finalized on May 19, 2025, affirms the Tribe’s federally reserved right to 20,000 acre-feet per year of groundwater, establishing a critical precedent grounded in priority dates tied to the original establishment of the reservation in 1876 and 1877. These reserved rights, known as Winters rights following the 1908 Supreme Court case Winters v. United States, confirm the federal reservation of water sufficient to meet the Tribe’s present and future needs.
Tribal Chairman Reid D. Milanovich celebrated the settlement as a significant step forward. “The agreement affirms the Tribe’s right to manage, regulate, and govern the use of the Tribal Water Right in the Coachella Valley, and simultaneously provides a tangible benefit to the entire community,” Milanovich said. “We collaboratively arrived at a resolution that recognizes the Tribe’s sovereignty and respects traditional and cultural water uses, ensuring sustainable management and reliability for future generations.”
Central to the settlement is the establishment of the Agua Caliente Water Authority, which grants the Tribe the authority to administer its groundwater resources in cooperation with the CVWD and DWA through a Memorandum of Cooperation. This cooperative framework is designed to protect and enhance the health of the region’s aquifer, benefiting both Tribal and non-Tribal residents across the valley.
The settlement not only secures the Tribe’s rights but also authorizes significant federal and state funding aimed at bolstering water security throughout the region. The Tribe and water districts will jointly pursue congressional legislation to authorize up to $500 million in federal funds, supplemented by an additional $15 million sought from the state of California. These funds are earmarked for critical infrastructure projects, groundwater augmentation, water conservation, recycling initiatives, and stormwater capture, significantly enhancing regional water sustainability.
“The funding secured through this settlement will be transformative,” said Paul Ortega, Desert Water Agency Board President. “It will enable us to ensure the reliability and quality of our water supply, facilitating essential infrastructure improvements and fostering cooperative management strategies.”
One notable element of the settlement is the resolution of financial disputes over groundwater use fees. Previously, both the Tribe and the Water Districts levied separate charges on groundwater pumpers within Reservation boundaries. Under the new agreement, groundwater pumpers on Reservation trust lands will only pay either the Water Districts’ replenishment assessment charge or the Tribe’s production fee, ensuring no double charging occurs and minimizing financial impact on local water users.
Moreover, the Tribe has committed to investing settlement funds into water conservation and infrastructure projects extending benefits well beyond the Reservation boundaries. The broader Coachella Valley community will benefit from improved water reliability through these cooperative efforts aimed at groundwater replenishment and conservation, thereby enhancing regional water security.
Another significant development under the agreement addresses long-standing issues surrounding the possessory interest tax (PIT) on Reservation lands. The settlement provides for the replacement of the existing county tax with an equivalent Tribal possessory interest tax. This change ensures that tax revenues remain within the local community, enhancing governmental services and water management infrastructure rather than dispersing funds into county-wide obligations.
CVWD Board President John Powell Jr. emphasized the future-focused benefits of the agreement, highlighting the importance of collaborative resource management. “This settlement represents a historic opportunity to safeguard our region’s water resources. Our collective commitment to responsible groundwater management and diversified water strategies will ensure that Coachella Valley thrives for decades to come,” Powell stated.
For Tribal members, the settlement ensures water security and the preservation of traditional water uses. Tribal members will retain unrestricted access to springs, seeps, and other water sources for cultural practices, highlighting the settlement’s sensitivity to preserving the Tribe’s heritage and sovereignty.
The resolution of these complex legal disputes marks a critical milestone, as it resolves litigation initiated by the Tribe in 2013 and 2020. These cases sought recognition and protection of the Tribe’s federally reserved water rights, as well as the removal of replenishment assessment charges against Tribal water rights.
With this comprehensive settlement agreement, all parties involved – the Agua Caliente Band of Cahuilla Indians, CVWD, DWA, and the United States – demonstrate a commitment to collaborative, sustainable water management. It establishes a model of cooperative governance that respects Tribal sovereignty, benefits the broader community, and sets a precedent for future water rights settlements nationwide.”We are grateful for the spirit of cooperation demonstrated by all parties in reaching this historic settlement,” Milanovich concluded. “Together, we are setting a course toward a sustainable water future for everyone in the Coachella Valley.”
As the settlement moves toward congressional approval and implementation, residents of the Coachella Valley can look forward to a future where collaborative water management, grounded in mutual respect and shared goals, becomes the hallmark of regional water security.
