Cloverdale Residents Raise Concerns Over Water Supply for Esmeralda Project

Uncertainty over future water source from decommissioned Potter Valley Project raises doubts about approving large development

Feb. 23, 2026 at 8:04am

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Residents of Cloverdale, California are expressing concerns that the city may not have enough water to support the proposed Esmeralda project, a large mixed-use development with 1,500 potential residents, hotels, landscaping, and businesses. The uncertainty surrounding the decommissioning of the Potter Valley Project, which currently provides supplemental water to the Russian River and Cloverdale, has led some to argue it is not the right time to approve such a large project until a long-term water solution is secured.

Why it matters

The Esmeralda project represents significant growth for the small city of Cloverdale, but residents are worried the development may outpace the city's ability to reliably provide water, especially given the looming changes to the regional water supply. This raises questions about the city's planning process and whether approving large projects should be delayed until long-term water security is assured.

The details

The developers of the Esmeralda project have submitted a report claiming Cloverdale has enough water to support the influx of new residents and businesses. However, this report does not account for the uncertainty surrounding the decommissioning of the Potter Valley Project, which currently funnels water from the Eel River to supplement the Russian River during dry months. With numerous local, state, tribal and federal agencies working to find a solution to maintain some of this water flow, it may be years before a resolution is achieved and implemented. Residents argue it is unwise to approve a major development project like Esmeralda until this long-term water issue is resolved.

  • The Potter Valley Project is currently slated for decommissioning.
  • It may take years before a solution is found to maintain some of the water flow from the Eel River to the Russian River.

The players

Esmeralda Project

A proposed mixed-use development in Cloverdale, California that would include 1,500 potential residents, hotels, landscaping, and businesses.

Cloverdale

A small city in California that is considering approving the Esmeralda project, but residents are concerned the city may not have enough water to support it.

Potter Valley Project

A hydroelectric project that currently funnels water from the Eel River to supplement the Russian River during dry months, providing water to Cloverdale and other areas. The project is slated for decommissioning.

Diana Pennington

A Cloverdale resident who argues the city should not approve the Esmeralda project until the long-term water supply issues are resolved.

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What they’re saying

“Disregarded is the uncertainty of Cloverdale's future water source due to the decommissioning of the Potter Valley Project, which funnels some water from the Eel River to supplement the Russian River during dry months. This water flows south, supplying Cloverdale and Geyserville.”

— Diana Pennington, Cloverdale Resident

What’s next

Local, state, tribal and federal agencies are currently working on a solution to maintain some of the water flow from the Eel River to the Russian River after the decommissioning of the Potter Valley Project. A resolution may take years to achieve and implement.

The takeaway

This case highlights the importance of ensuring long-term water security before approving major development projects, especially in areas facing uncertainty over their future water sources. Cloverdale residents argue the city should delay approving the Esmeralda project until a solution is found to maintain the water supply that currently supports the region.