Squeezing the State: How POM Wonderful Privatized California’s Water
Squeezing the State: How POM Wonderful Privatized California’s Water The story of how the Resnicks (owners of POM) gained control over such a massive amount of water is often described by critics as a "water heist" or the "privatization of a public trust." It didn't happen by buying a lake or a river, but through a series of complex, secretive negotiations that exploited loopholes in California’s aging water laws. Here is the breakdown of how it happened: 1. The "Secret" Monterey Agreement (1994) In the early 1990s, California was suffering through a severe drought. Public water officials and several major water contractors (the buyers of state water) met behind closed doors at a resort in Monterey to rewrite the rules of the State Water Project . The Swap: Before this meeting, the state owned the Kern Water Bank , an underground reservoir that cost taxpayers roughly $74 million (over $220 million today) to develop. The Deal: In ex...