Water Supply

Summary

In June of 2026, Lusted Water District signed a 30-year water supply agreement with the City of Gresham.  The District plans to transition water supply from the Portland Water Bureau to the City of Gresham water system in the spring of 2027.  The contract with Gresham allows the District to take up to 500 gallons per minute (gpm). 

The City of Gresham is a water supply partner with the Rockwood Water PUD.  Together, the two agencies have formed the Cascade Groundwater Alliance to jointly develop and maintain well, treatment, storage and pumping facilities.  Water for Lusted Water District will come from the Alliance's wells, be treated to reduce manganese and iron levels, and then flow through Gresham's transmission system towards Lusted Water District.

Lusted Water District is conveniently located immediately adjacent to the City of Gresham and its existing transmission pipelines.

In recent years, Lusted Water District has carefully considered other water supply alternatives including the development of our own wells.  However, challenges in obtaining a water right from the Oregon Department of Water Resources have prevented progress on this alternative.

As of July 1, 2026, the District is receiving its water supply from the City of Portland via a short-term water supply agreement.  Our long-term supply contract from the City of Portland expired on June 30, 2026.

Why Change Water Supply?

The primary rationale for switching water supplies from the City of Portland to the City of Gresham is cost.  While Portland's Bull Run water supply is recognized for its excellent quality and taste, the development of the new water filtration plant will dramatically increase the cost of water deliveries from the Bull Run Watershed. This projected cost increase has forced the District to consider supply alternatives.

Recent water supply infrastructure development by the City of Gresham is also causing their water supply costs to increase; however,  these increases are far smaller than the cost increases that Portland is projecting.

Generally, water supply pricing between government agencies is based on cost reimbursement for the groups of assets involved in supplying the wholesale water.  Reimbursable costs generally include annual operations and maintenance, depreciation, debt service and return on capital for non-depreciated assets.   

Portland's water filtration plant, and associated large-diameter pipeline improvements, will have a capital cost of more than $2.5 billion.  This massive capital investment will dramatically increase the rate base, and future wholesale costs, of Portland's water supply system.

The District does not take a position on Portland's policy decision to build the filtration plant; however, we do recognize that the filtration plant will improve the quality and resilience of the Portland water supply system.

The filtration plant project cost is the primary reason the cost of Portland water supplied to Lusted Water District would increase from $1.70 per unit in 2025 to a projected cost of approximately $10.50 per unit in 2031.  These costs projections are expected to climb further over time.

What to Expect from a Gresham Water Supply?

The water supply from Gresham and Rockwood's Cascade Groundwater Alliance is high quality and reliable.  Lusted Water District is fortunate to have been invited by Gresham to be their only wholesale customer.   

Key differences between water from the Cascade Water Alliance vs. Portland's Bull Run:

1.  Cascade Water Alliance will be 100% sourced from groundwater vs. surface water from the Bull Run (river & reservoirs).  Groundwater is harder and more alkaline, and has a higher concentration of most natural minerals and salts.

2.  Cascade Water Alliance will be chlorinated with "free chlorine" rather than Portland's "chloramine".  Both are commonly used chlorination methods around the world.

The result is that some customers will notice a difference in the taste of water.  Water from Gresham and Rockwood will likely have a more noticeable chlorine taste even though the overall amount of chlorine in the Gresham and Rockwood water supply is expected to be roughly half that of the Portland water supply.  Some individuals can also taste the difference in mineral content between groundwater and surface water.  

For extensive information about the Gresham and Rockwood water supply, including water quality data, please review these references in detail:

https://www.greshamoregon.gov/environmental-services/water-services/cascade-groundwater-alliance/

https://rwpud.org/cascade-groundwater-alliance/

https://rwpud.org/cascade-groundwater-alliance-water-quality/

https://rwpud.org/cgafactsheet.pdf

https://yourwater.oregon.gov/inventory.php?pwsno=00668

Lusted Water District's Water Quality Monitoring and Compliance Program

Water Supply History near Barlow High School

Prior to July 1, 2026, the District has purchased its entire water supply from Portland's Bull Run water supply system (with dozens of backup wells located in northeast Portland) for many decades.  It is unknown when the homes and farms in our region started utilizing Bull Run water; however, it is possible they started using Bull Run water early in the the 20th century if not the late 19th century.   The original pipeline from the Bull Run to the City of Portland was laid under Pipeline Road and passes direclty through our District.  Today, all three operational Bull Run pipelines run through the Lusted Water District on their way to the City of Portland.

During new pipeline construction projects on Roork Road and Chase Road in 2022 and 2024 we found old abandoned 2-inch iron water pipe that was the predecessor to the 4-inch and 6-inch steel pipelines that we were replacing.  The 4-inch and 6-inch steel pipelines may have been installed in the 1940s or 1950s.  

During a sewer construction project in 2018 on Lusted Road, between 282nd and 302nd Avenues, wood stave water pipe was uncovered and removed from the right of way.  Lusted Water District still stores a sample of this pipe.

These abandoned historical water pipes confirm the long history of community potable water distribution in our region.