Water War Ends: Agua Caliente Tribe Secures 20,000 AFY Water Right and $500M Trust Fund.

If you live in the Coachella Valley, this bill is a big deal. It’s the legislative equivalent of signing a peace treaty after a decade-long water war. The Agua Caliente Band of Cahuilla Indians Water Rights Settlement Act ratifies a massive agreement between the Tribe, the United States, and local water agencies (the Coachella Valley Water District and Desert Water Agency) to finally settle all outstanding water rights claims. The core of the deal is the confirmation of the Tribe’s right to 20,000 Acre-Feet Per Year (AFY) of Groundwater in the Indio Subbasin, with a priority date dating back to the 1870s, which is superior to the local water districts. To sweeten the deal and fund future water security, the Act authorizes the creation of a $500 million Settlement Trust Fund for tribal water infrastructure and groundwater projects.

The $500 Million Water Security Fund

Think of the $500 million fund as a massive investment in the desert’s future water security. The money is broken down into four accounts, each with a specific purpose. For example, a big chunk goes into the Agua Caliente Development Projects Account ($300 million), which is earmarked for planning and building new water infrastructure. Another $100 million goes into the Groundwater Augmentation Account—money the Tribe must use to reimburse the Water Districts for investments that help replenish the Indio Subbasin. This isn't just a tribal benefit; it's a structural investment in the entire region’s aquifer health. Importantly, the bill explicitly prohibits any of this money from being distributed to Tribal Members on a per capita basis, meaning every dollar is supposed to go toward infrastructure and management, not individual payouts.

The Great Tax Swap: Who Pays for Services?

Here’s where the bill directly impacts local taxes and the people living or running businesses on leased land within the Reservation. The Act preempts the Riverside County Ad Valorem Property Tax on Possessory Interests (like long-term leases on tribal land). Instead, the Tribe is granted the authority to impose its own Tribal Possessory Interest Tax on those same leaseholds (Section 11).

Before you panic about double taxation or tax hikes, the bill includes a crucial safeguard: the Tribal Tax rate and assessed value cannot be lower than what the County would have charged. Furthermore, the Tribe is mandated to distribute proceeds to other local public agencies (like school districts or fire departments) in the same amounts they would have received from the County Tax. For the average resident or business owner on the Reservation, this means the tax bill should look similar, but the revenue stream now flows through the Tribe, which then acts as the distributor to local services. This shift gives the Tribe a new sovereign revenue stream while ensuring local public services don't suddenly lose their funding.

The Cost of Peace: Waiving Legal Claims

This settlement is a classic trade-off: certainty and funding in exchange for giving up the right to sue. As a condition of securing the water right and the $500 million, the Tribe and the United States (acting as the Tribe’s trustee) must waive and release a massive range of legal claims against the Water Districts (CVWD and DWA) and the United States (Section 9). These claims include virtually all past and future claims related to water rights, groundwater overdraft, and damages stemming from the districts’ operations, provided those operations align with the new Agreement. For the Water Districts, this is a huge win, eliminating decades of potential litigation and liability. For the Tribe, it means closing the door on past grievances in exchange for a guaranteed, superior water right and the capital to manage it.

Land Transfers and the Fine Print

The Act also dictates several land transfers. Most notably, large parcels of Federal land—totaling over 2,600 acres—will be taken into trust for the Tribe, expanding the Reservation (Section 12). Separately, the Coachella Valley Water District (CVWD) can purchase the 842-acre Whitewater River Recharge Facility Land from the U.S. government at fair market value (Section 13). This sale ensures that the critical facility, which helps replenish the aquifer, remains operational under CVWD’s control. The bill also contains detailed rules for Allottees (individual tribal land owners), requiring them to exhaust all remedies under the Tribe’s Water Ordinance before they can pursue any federal legal claims against the United States regarding their water entitlements, ensuring tribal governance is the first line of defense for water disputes (Section 5).