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Water Project, local surface water runoff that is stored at <br />Lake Del Valle, and groundwater. <br /> <br /> SWP Water Supply. At the time of its formation, Zone 7 was <br />faced with severe groundwater overdrafts and deficiencies in <br />local water supplies that restricted further development. To <br />deal with water supply problems of its service area, Zone 7, in <br />1961, entered into a water supply contract with The Sta~e <br />Department of Water Resources for water deliveries from the <br />State Water Project (the "SWP"). <br /> <br /> The SWP is a system of water conservation and conveyance <br />facilities which supplies water for municipal, industrial, and <br />agricultural users to areas that account for approximately <br />two-thirds of the State's population. The State has 30 SWP <br />contract customers, the two largest being the Metropolitan <br />Water District of Southern California and the Kern County Water <br />Agency. SWP contract customers served by the South Bay <br />Aqueduct element of the SWP are as follows: Zone 7; Alameda <br />County Water District which serves the Cities of Fremont, <br />Newark, and Union City; and Santa Clara Valley Water District <br />which serves most of Santa Clara County including the San jose <br />metropolitan area. <br /> <br /> The term of Zone 7's 1961 contract for SWP water is 75 <br />years or until all bonds issued by the .State under the <br />Burns-Porter Act (California Water Code Sections 12930 e~ seq.) <br />are retired, whichever period is longer. Under the terms of <br />its SWP contract, Zone 7 has annual water supply entitlements <br />which increase annually to a maximum of 46,000 acre-feet in <br />1997 and thereafter as shown in the Tabulation below. In 1986, <br />Zone 7's SWP water entitlement was 28,000 acre feet, however, <br />only 23,600 acre feet of SWP water was used by Zone 7. <br /> <br /> Zone 7 Annual Entitlements to SWP Water <br /> <br /> Year Acre Feet Year Acre Feet <br /> <br /> 1987 29,000 1993 38,000 <br /> 1988 30,000 1994 40,000 <br /> 1989 31,000 1995 42,000 <br /> 1990 32,000 1996 44,000 <br /> 1991 34,000 1997 46,000 <br /> 1992 36,000 Thereafter 46,000 <br /> <br /> Major features of the Zone 7 SWP contract are summarized <br />below as they relate to availability and use of SWP water. <br /> <br /> (1) No sale or other disposal of project water <br /> delivered to Zone 7 shall be made for use outside <br /> <br /> 15 <br /> <br /> <br />