Blog: New court guidance on rights to use captured water/percolating groundwater
On March 14, 2025, the Court of Appeal for California’s Fifth Appellate District issued its decision in Sandton Agriculture Investments III v. 4-S Ranch Partners, 2025 S.O.S. 659. That case provided guidance on ownership of captured water and percolating groundwater. … The opinion in this case is a timely one that provides guideposts for how parties should think about property rights when purchasing or selling property. The water rights at issue in this case were arguably worth between $200 million and $600 million, and Sandton acquired them almost for free. This case should be considered in any acquisition or transfer of property with captured water or groundwater.