Bay Area Leads Nation in Squeezing Most Economic Value from Water

The Bay Area not only is one of the stingiest water users in the country it also squeezes more economic value out of every precious drop than any major metropolitan area in the nation, according to a new analysis the Bay Area Council Economic Institute released today. The findings come as state officials consider cutting water flows to the Bay Area.

San Francisco led U.S. counties with over $1.32 million of gross domestic product (GDP) generated per acre-foot of water consumed, while Silicon Valley led US metropolitan regions with almost $504,000 in GDP per acre-foot of water consumed, the study found. One acre foot equals 325,851 gallons or about the amount of water used by 11 Californians per year.

“Nobody gets more bang per gallon than Bay Area residents and businesses” said Jim Wunderman, President and CEO of the Bay Area Council. “Public policy should encourage population and economic growth in the most water efficient ways possible, including supporting development in areas with a proven track record of economic efficiency with our limited water supplies.”

The findings come as the State Water Resources Control Board discusses a plan to reduce water diversions from the San Joaquin River and its tributaries, including the Tuolumne River. In an average year, approximately 48 percent of Tuolumne River water is diverted to the Turlock and Modesto Irrigation Districts, 38 percent remains in the river, and 14 percent serves the San Francisco Public Utilities Commission and its 2.6 million customers in San Francisco, Silicon Valley, and the East Bay. Residents in the SFPUC service area use an average 54 gallons per day, compared to the California state average of 82 gallons.