# California water infrastructure upgrades > Live situation record from CLSTR: https://clstr.news/situations/california-water-infrastructure-upgrades > Updated: 2026-08-21T10:09:27.000Z. Sources: 7. Developments: 3. In late July 2026, the Santa Clara Valley Water District awarded a $1.88 billion contract to a Flatiron-Dragados-Sukut joint venture to rebuild Anderson Dam. The seven-year seismic retrofit, part of a $2.8 billion effort, will reconstruct the dam and spillway, install new outlet pipes, and add safety upgrades, with construction slated to begin in early 2027. A few days later, on 28 July 2026, the Valley of the Moon Water District opened the Park and Verano Aquifer Storage and Recovery (ASR) project in Sonoma Valley. The ASR system stores water in the aquifer for later recovery during droughts or peak demand, improving local water-supply reliability. The ceremony also reiterated the Anderson Dam contract and highlighted that Valley Water has secured over $114 million in state and federal grants for critical water-infrastructure projects. By late August 2026, FlatironDragados and Sukut Construction have commenced seismic reinforcement works on the Anderson Dam in Morgan Hill. The project aims to improve the dam's ability to withstand major earthquakes, which would allow the reservoir to return to normal operating levels. Since 2020, the managing agency, Valley Water, has been forced to limit the reservoir to approximately 3% capacity due to seismic safety concerns. The scope of work includes reconstructing the dam body and spillway, installing new drainage infrastructure, and implementing road, utility, and environmental improvements. Additionally, FlatironDragados is nearing completion of a 518-meter-long tunnel designed to serve as a bottom outlet for reservoir level control. Together, these developments illustrate a coordinated push by California water agencies to strengthen water storage, enhance flood protection, and increase resilience against seismic risk. ## Claims - Valley Water awarded a $1.88 billion contract to rebuild Anderson Dam, with total project cost about $2.8 billion. (corroborated by 2 sources) - The Anderson Dam seismic retrofit project will begin in early 2027 and last seven years. (corroborated by 2 sources) - The retrofit will rebuild most of the dam and spillway, install new outlet pipes, and add safety upgrades. (corroborated by 2 sources) - The project aims to improve water supply reliability, support groundwater recharge, reduce flood risk, and restore recreation at Anderson Reservoir. (corroborated by 2 sources) - Since 2023, Valley Water has received more than $114 million in state and federal grants for water infrastructure projects. (corroborated by 2 sources) - The Valley of the Moon Water District opened the Park and Verano Aquifer Storage and Recovery Project on July 28, 2026. (single source) - The ASR system stores water underground for later recovery during droughts or emergencies. (single source) - Steve Caniglia is the Board President of the Valley of the Moon Water District. (single source) ## Timeline ### 2026-08-21: ACS subsidiary begins $1.9 billion seismic reinforcement of California's Anderson Dam ACS subsidiary FlatironDragados and Sukut Construction have begun a $1.9 billion seismic reinforcement project on California's Anderson Dam to improve earthquake resilience and water security. 2 sources. https://clstr.news/cluster/acs-subsidiary-begins-19-billion-seismic-reinforcement-of-californias-anderson-dam ### 2026-08-03: California Water Agencies Launch Major Infrastructure Projects California water agencies opened an aquifer storage project in Sonoma and awarded a $2 billion seismic retrofit contract for Anderson Dam in Santa Clara, aiming to boost water reliability and safety. 3 sources. https://clstr.news/cluster/california-water-agencies-launch-major-infrastructure-projects ### 2026-07-31: Anderson Dam Seismic Retrofit Project Secures $1.88B Contract in California FlatironDragados‑Sukut wins a $1.88 billion contract to retrofit California’s Anderson Dam, addressing seismic risks and restoring reservoir capacity. 2 sources. https://clstr.news/cluster/anderson-dam-seismic-retrofit-project-secures-188b-contract-in-california --- Cite as: California water infrastructure upgrades. CLSTR, https://clstr.news/situations/california-water-infrastructure-upgrades