Each year, Valley Water develops its Capital Improvement Program (CIP) Five-Year Plan, a rolling plan that outlines the projects needed to maintain a strong and reliable water system for Santa Clara County. The plan includes project descriptions, estimated schedules, costs and planned funding sources for these critical infrastructure investments.
Much of Valley Water’s water supply systems, such as dams, pipelines, treatment plants and other facilities, are 50 to 60 years old. In recent years, the CIP has focused on maintaining and upgrading this aging infrastructure to keep it safe and effective. Last year’s Five-Year Plan included 43 water supply projects, which made up about $7.9 billion of the total budget.
Here’s a look at some of the water supply projects included in last year’s adopted CIP fiscal year 2026-2030 Five-Year Plan.
Anderson Dam Seismic Retrofit and Tunnel projects
Valley Water is making steady progress on the Anderson Dam Tunnel Project. Crews are finishing work inside the tunnel by adding a concrete protective lining to strengthen its walls.
Construction is also advancing on the large diversion outlet structure located between the tunnel entrance and Coyote Creek. With walls rising 30 feet high, the structure will connect to the tunnel through large-diameter steel pipes. It is designed to slow down water leaving the reservoir before it reaches the creek.
Another key addition is a labyrinth weir, a zigzag-shaped wall that allows water to flow more safely and efficiently into the North Channel of Coyote Creek. This design increases flow capacity without widening the creek, reducing erosion, improving habitat, and helping protect nearby communities during major storms. The tunnel project remains on schedule and is expected to be finished by fall 2026.
Planning continues for the Anderson Dam Seismic Retrofit, which will strengthen the dam to better withstand earthquakes. Final design plans have been submitted to federal and state agencies for review, and environmental permitting is progressing. Construction is expected to begin in early 2027 and continue through 2033, ensuring the dam remains safe and reliable for decades to come.
Rinconada Water Treatment Plant Reliability Improvement Project
Built in the late 1960s, the Rinconada Water Treatment Plant is undergoing major upgrades as key equipment reaches the end of its service life. The project includes improvements to treatment processes and will increase capacity from 80 to 100 million gallons per day, while meeting updated water quality, seismic, and safety standards.
The plant’s four original clarifiers were demolished in 2024, and construction is progressing, with major work underway on the new ozone-generation building, chlorine contactor, and filters. The project is on schedule, and all phases are targeted for completion by late 2029.
10-Year Pipeline Inspection & Rehabilitation • Pipeline Maintenance Program
Launched in 2007, the Pipeline Maintenance Program guides routine inspections and maintenance activities. In April 2025, Valley Water’s Board of Directors approved an updated version of the program that reflects advancements in technology, evolving regulations, and current best practices. The update also fully integrates the 10-Year Pipeline Inspection and Rehabilitation Program, improving coordination and long-term planning.
The Pipeline Maintenance Program takes a proactive, long-range approach by inspecting pipelines on a rotating cycle. It includes condition assessments using advanced tools, repairing or replacing damaged sections, upgrading valves and components, installing real-time monitoring systems, and using data to prioritize future investments.
Since implementing this strategy, Valley Water has inspected 80 miles of pipelines, replaced more than 1,000 aging components, repaired numerous joints, and installed monitoring systems along roughly 300,000 feet of pipeline. These efforts improve reliability, reduce emergency risks, extend pipeline life, and support a resilient, cost-effective water system prepared for future demands and challenges.
Upcoming CIP meetings
Valley Water staff will hold a series of meetings and presentations to the Board of Directors during the annual CIP process.
On March 10, 2026, staff will present the CIP Draft FY 2027-31 Five-Year Plan for Board approval, after which it will undergo a 60-day public review period. Additionally, Valley Water will share the Draft with local cities and the County of Santa Clara for review to ensure consistency with their general plans.
On April 28 and 29, 2026, Valley Water will hold a public hearing and formally receive community input. The Board will close the hearing on May 12, 2026, when staff presents the CIP Final FY 2027-31 Five-Year Plan and the FY 2027-28 biennial budget for approval.