Water flowing from a kitchen sink tap. The federal government under President Donald Trump has paused new regulations governing PFAS, so-called ‘forever chemicals,’ and has also frozen funding for a number of environmental projects. Fayetteville and Cumberland County are among places that have been impacted.
Diablo Grande, California – In a stark warning about the perils of development in water-scarce regions, the residents of Diablo Grande — a remote, master-planned community in California’s Stanislaus County — have approved a dramatic and painful increase in water rates, hoping to stave off the threat of service shutoff and economic collapse.
At a packed and emotionally charged board meeting on Saturday, the Western Hills Water District voted to raise base monthly rates from $145 to $568 — a nearly 300% increase — with many households now paying close to $600 a month once usage fees are factored in. The hike was approved with minimal protest, a sign of just how dire the situation has become.
Located about 30 miles southwest of Modesto, Diablo Grande was once envisioned as a luxurious foothill escape, complete with golf courses, thousands of homes, and resort amenities. But only a fraction of that vision materialized: about 600 homes, one golf course — now closed — and an increasingly untenable reliance on imported water. That water, pumped from the Kern County Water Agency (KCWA) some 200 miles away, is governed by a contract signed in 2000 when the project still imagined a sprawling population.
Now, with just a few hundred homes and $13.5 million in unpaid water bills, the residents of Diablo Grande find themselves footing a bill designed for a much larger community — a crisis rooted in two decades of failed development, shifting management, and structural financial mismanagement. The last payment to KCWA was made in 2019. Since then, the district has operated under mounting debt and dwindling options.
KCWA notified the Western Hills Water District earlier this year that it would terminate service on June 30 unless payments resumed. A short extension was granted last week, contingent upon approval of the rate hike, with water deliveries now secured through the end of 2025 — but only if monthly payments continue.
District officials say they are pursuing long-term solutions, including a new pipeline to connect with the nearby Patterson Irrigation District and the drilling of new test wells. But none of these options are guaranteed. And for many residents — including retirees and families on fixed incomes — the approved rate is already an unsustainable burden.
“This community was sold a dream — and now they’re paying for someone else’s failure,” said one resident at the June 4 meeting. Another demanded a monthly accounting of all district expenditures. “We want to know where every penny is going.”
The Prop. 218 process, which allows property owners to formally protest rate increases, yielded just 14 valid protests — far short of the majority needed to block the hike. The board, promising transparency and oversight, acknowledged the hardship but argued the increase was necessary to avoid an immediate shutoff and total collapse of the system.
For now, the taps in Diablo Grande will stay on. But the price of that water — financially and symbolically — is a reminder of what happens when big visions collide with ecological limits and chronic mismanagement. The residents are left holding the bill.
