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Thursday's announcement by water officials comes as the most-populous U.S. state anticipates a fourth dry year.
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San Diego city officials released water to keep the lake level from going above safe levels.
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The southern San Diego County agency is conducting a water transfer from its Loveland lake near Alpine, citing drought conditions.
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The Pipeline Project involves the installation of a one-mile pipeline at Miramar Reservoir, which is expected to provide the city with nearly half of its water supply by 2035 through Pure Water San Diego.
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The penalty is the maximum the ranchers — who pumped Shasta River water for eight days — could face under state law. It amounts to about $50 per rancher, which is no deterrent, ranchers and officials agree.
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One option would allow the federal government to take unilateral action, as it threatened this summer when it asked states to drastically cut their use. The seven states affected haven't come up with a plan of their own.
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California's Coastal Commission has approved a desalination plant that could turn up to 5 million gallons of seawater a day into drinkable water.
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The San Diego Regional Water Quality Control Board Wednesday announced that soil and groundwater contaminated by petroleum near the Mission Valley Terminal have been cleaned following decades of work.
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Work on Hodges Reservoir Dam began last May after inspections identified areas that needed to be repaired and sealed.
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A major storm that battered western Alaska over the weekend has churned through Northern California after bringing early-season snow to mountains and dropping rain that helped firefighters increase containment of a huge wildfire.
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