The State of California has experienced unprecedented water management challenges due to severe drought in recent years. South of Delta CVP contractors, such as the Transfer Recipients, experienced reduced water supply allocations from 2007 to 2022 due to hydrologic conditions and regulatory requirements. In 2020, based on hydrologic conditions, Reclamation declared an initial 20 percent allocation for South of Delta CVP agricultural contractors for the 2020 Contract Year. In both 2021 and 2022, South of Delta CVP contractors received an allocation of 0% percent. As a result, South of Delta water contractors have a need to find alternative sources of water to fulfill demands.