More than 300 of these agencies serve 3,000 or more connections. Most of these local agencies are directly involved in the retail sales of water to urban users. However, some only wholesale water to other agencies. Water supplied from these projects is sold to local retail and wholesale agencies throughout the State. Sometimes water supplies will pass through one or more wholesalers and a retailer before reaching the final users.
Many factors influence the retail water prices levied by urban water agencies.
Some of these are discussed below. Source Water prices depend greatly on the costs of obtaining the water supplies. Another significant factor is the distance water must be transported from the source to the ultimate place of use. For example, the State Water Project delivers supplies to users in northern, central, and southern California. Water delivered to Southern California must travel through hundreds of miles of aqueducts and be pumped over a mountain range before reaching the final destination.