The Steinbecks have been able to tap this subterranean resource at will because they own the land above it—and because California is the only western state that lacks groundwater regulation. But that boon to farmers is also a looming disaster, as groundwater levels free fall. Groundwater is a huge piece of California’s water supply, making up approximately 40 percent of the state's water demands in an average year and up to 60 percent or more during droughts, according to the Department of Water Resources.

“In the absence of governance, it’s become a pumping arms race,” said Felicia Marcus, chair of the State Water Resources Control Board. “He with the biggest pump or deepest straw wins.”

But now a bill on the floor of the California legislature could turn that around. Although water rights holders in California have been resistant to change, this week the state is considering one big step forward: Senate Bill 1168 and Assembly Bill 1739, which would provide state-wide groundwater regulation for the first time. These bills “embrace the concept that groundwater is best managed locally,” said Senate bill author Fran Pavley, a Democratic representative from Agoura Hills, as she brought the vote on the assembly bill August 27. “Manage your groundwater basins, and the state will not have any reason to interfere with your right to have your own governance board and to set your own rules and regulations,” she said.

The assembly bill passed the senate and will now return to the assembly for a final “concurrence” vote. The senate bill must still pass the assembly and, once again, the senate, before the session ends August 31. Then California Governor Jerry Brown will have 30 days to sign or veto it. He has been supporting the bill throughout the process.

However, even if the bill becomes law, it’s unclear whether it will help the folks in Paso Robles avoid the current spate of neighbors suing neighbors. Groundwater basins would have two years to form a local management agency, five years to adopt a sustainable management plan, and 20 years to achieve a sustainable supply of groundwater.

The Paso Robles groundwater basin has been declining for years, said San Luis Obispo County board of supervisors chair Bruce Gibson, but “the drought has magnified the effect.” When wells began to dry up last summer, the board passed a moratorium on new water use in the basin that prohibits both new buildings outside of city limits and planting new crops without fallowing others.

Groundwater depth in many areas have fallen 70 feet since 1997. (GEI Consultants)

Historically, landowners in California have considered water beneath their land to be part of their property rights.

That’s how Steinbeck and her neighbors see it. Any limitation to their right to pump and use the water under their land, such as the moratorium, is “taking over our rights,” said Steinbeck.