The next governor of California should prioritize water infrastructure modernization, groundwater sustainability and climate resilience, according to a new report from the Public Policy Institute of California (PPIC) Water Policy Center.

The October 2026 report, Priorities for California’s Water: Advice for the Incoming Governor, identifies several areas requiring state leadership, including disaster preparedness, implementation of the Sustainable Groundwater Management Act (SGMA), modernization of water accounting systems and development of reliable long-term infrastructure funding.

The report warns that climate change is intensifying California’s cycles of drought and flooding while aging infrastructure and groundwater depletion threaten water supply reliability. Groundwater accounts for approximately 40% of the state’s overall water supply, making sustainable aquifer management particularly important.

To advance SGMA implementation, the report recommends streamlining permitting for groundwater recharge, establishing more consistent groundwater accounting methods, addressing land subsidence and providing groundwater sustainability agencies with additional financial and policy resources. It also calls for improved water data systems to help managers track availability, use and legal allocations.

Other recommendations include expanding revolving loan funds and exploring beneficiary-based financing models, accelerating freshwater ecosystem restoration and investing in floodplains, wetlands and other nature-based infrastructure.

The report also highlights risks to critical water conveyance infrastructure, particularly in the Sacramento-San Joaquin Delta, where subsidence, flooding and seismic activity could disrupt deliveries to millions of residents and agricultural users.

PPIC said the incoming administration will need to coordinate state agencies, local water managers and other stakeholders to address the state’s long-term water challenges.