California American Water has submitted written testimony to the State Water Resources Control Board supporting a temporary suspension of the cease-and-desist order restricting new water connections on the Monterey Peninsula. The company says strong water storage through Aquifer Storage and Recovery and regulatory progress on desalination could provide flexibility for the community while protecting the Carmel River. The order, imposed in 2009, has helped the Carmel River watershed and its steelhead population recover but constrained affordable housing, business growth and economic development for nearly two decades. The California Public Utilities Commission unanimously confirmed last summer that Monterey could face an annual water shortfall of 815 million gallons by 2050. California American Water said its three-part Monterey Peninsula Water Supply Project—Aquifer Storage and Recovery, water recycling and desalination—is intended to address the region's needs, while describing desalination as the only component that would provide a new, drought-proof supply. Public comment to the Water Board is scheduled for November 5, 2026.