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Valley Water Landscape Conversion Rebate — $2–$4/Sq Ft for South Bay

Valley Water (Santa Clara Valley Water District) runs the Landscape Conversion Rebate for all of Santa Clara County. The program pays $2 per square foot at the base rate to remove existing lawn and plant drought-tolerant or native plants. Several cities have cost-sharing partnerships with Valley Water that raise the rate to $3–$4/sqft on the first 1,000 square feet. The program is funded through June 30, 2026. Pre-approval is required — any turf removal started before receiving a Notice to Proceed is not eligible for reimbursement.

How to Apply

  1. 1

    Confirm your water retailer at valleywater.org

    Use the "Find My Retailer" tool to confirm which water company serves your address and whether you qualify for a cost-sharing rate. San Jose has three retailers — make sure you know which one bills you.

    Find your Valley Water retailer
  2. 2

    Review the Qualifying Plant List before designing your planting

    Download or browse the Qualifying Plant List through the portal. At least 50% of the converted area must be covered by plants from this list at maturity. California natives are encouraged and can be found through Calscape.org cross-references.

    Valley Water Qualifying Plant List
  3. 3

    Submit your application at scvwd.dropletportal.com

    Create a portal account using your water account number. Submit the application with photos of the existing lawn, estimated square footage, and your proposed plant list confirming 50%+ living coverage at maturity.

    Apply on the Valley Water portal
  4. 4

    Complete the pre-conversion inspection and receive a Notice to Proceed

    Valley Water will review your application and may conduct a file review or on-site inspection. Do not start any work until you receive the written Notice to Proceed. The notice gives you 90 days to complete the project.

  5. 5

    Complete the conversion within 90 days

    Remove existing lawn, plant qualifying species, install minimum mulch, and update irrigation to drip if applicable. Keep all receipts — rebate is calculated on documented plant and irrigation equipment costs, capped at the per-sqft rate times converted square footage.

  6. 6

    Request post-inspection and receive your rebate

    Notify Valley Water that the project is complete and submit completion photos through the portal. After final inspection approval, Valley Water mails a rebate check within 4–6 weeks. Rebates of $2,000 or more require a W-9 form — you will receive a 1099 for the rebate amount.

Apply at scvwd.dropletportal.com

Learn More

Rebate Summary

Rebate ProgramAmountType
Palo Alto (cost-share partner)$4/sqft first 1,000 sqft, $2/sqft above, max $6,000Residential
Milpitas (cost-share partner)$4/sqft first 1,000 sqft, $2/sqft above, max $6,000Residential
Santa Clara (cost-share partner)$4/sqft first 1,000 sqft, $2/sqft above, max $5,000Residential
Gilroy (cost-share partner)$3/sqft first 1,000 sqft, $2/sqft above, max $4,000Residential
Morgan Hill (cost-share partner)$3/sqft first 1,000 sqft, $2/sqft above, max $4,000Residential
San Jose Municipal Water (cost-share partner)$3/sqft first 1,000 sqft, $2/sqft above, max $4,000Residential
All other South Bay cities (base rate)$2/sqft, max $3,000Residential
Commercial / large multi-family (5+ units)$2–$4/sqft, max $100,000–$135,000Commercial

Program funded through June 30, 2026. Pre-approval required before removing turf. 75 sqft minimum. Rebates of $2,000+ may be taxable income (W-9 required). Last verified May 2026 at valleywater.org.

Which cities are covered?

Valley Water is a wholesale water district serving all of Santa Clara County. Virtually all South Bay cities are covered: San Jose, Sunnyvale, Mountain View, Santa Clara, Milpitas, Palo Alto, Cupertino, Campbell, Los Gatos, Saratoga, Los Altos, Morgan Hill, and Gilroy. Some California Water Service customers in Cupertino, Los Altos, and Mountain View are eligible for Valley Water base rebates but not cost-sharing rates — Cal Water runs its own parallel program and you cannot receive rebates from both for the same project. San Jose residents are served by three water retailers: San Jose Water Company (base $2/sqft), San Jose Municipal Water System (cost-share $3/sqft), and Great Oaks Water Company (base $2/sqft). Note: this program does not serve Peninsula cities like Burlingame, Redwood City, or Menlo Park — those are BAWSCA member agencies.

  • Palo Alto: $4/sqft (cost-share) on first 1,000 sqft, $2/sqft above — max $6,000
  • Milpitas: $4/sqft (cost-share) on first 1,000 sqft, $2/sqft above — max $6,000
  • Santa Clara: $4/sqft (cost-share) on first 1,000 sqft, $2/sqft above — max $5,000
  • Gilroy and Morgan Hill: $3/sqft (cost-share) on first 1,000 sqft, $2/sqft above — max $4,000
  • San Jose Municipal Water: $3/sqft (cost-share) on first 1,000 sqft, $2/sqft above — max $4,000
  • All other cities (base rate): $2/sqft — max $3,000
  • Program funded through June 30, 2026 (or until funds depleted)

What does the replacement planting need to look like?

At least 50% of the converted area must be covered by living qualifying plants at mature size — not just at the time of installation. Plants must be from the Valley Water Qualifying Plant List, which draws from the WUCOLS (Water Use Classification of Landscape Species) database for low and very-low water-use species. California natives are encouraged and cross-referenced with Calscape.org. Vegetable gardens are allowed but do not count toward the 50% living plant coverage requirement. Artificial turf, sod grass alternatives, and invasive species are not eligible.

  • 50%+ of the converted area covered with qualifying plants at mature size
  • Plants must be on the Valley Water Qualifying Plant List (low or very-low WUCOLS rating)
  • Plants must be in-ground — potted plants and direct seeding do not count toward the 50%
  • No artificial turf, no seeded or sod grass alternatives, no Cal-IPC invasive species
  • Vegetable gardens allowed but count separately — do not contribute to the 50% living plant coverage
  • Mulch, gravel, or permeable hardscape allowed on remaining 50% of area

Why the pre-approval step is critical

Valley Water will not reimburse any turf that was removed before a Notice to Proceed was issued. This rule applies even to brown, drought-stressed lawn — if the grass is still physically present (even dead), the site qualifies. You have 90 days after receiving the Notice to Proceed to complete the project. Starting work even one day before the Notice arrives cancels eligibility for that area. The online portal walks you through the full application sequence.

Valley Water Landscape Conversion Rebate — $2–$4/Sq Ft for South Bay FAQs

Does this program cover all of San Jose?
Most of San Jose is served by San Jose Water Company (base $2/sqft, max $3,000). Residents in Alviso, Evergreen, Edenvale, and Coyote Valley are served by San Jose Municipal Water System ($3/sqft cost-share, max $4,000). A small eastern area is served by Great Oaks Water Company (base $2/sqft). Use the Find My Retailer tool at valleywater.org to confirm your water company.
Can I start removing lawn before applying?
No. Any lawn removed before receiving a written Notice to Proceed from Valley Water is not eligible for reimbursement, even if you submit the application right after. Brown or dead lawn still physically present on your property qualifies — Valley Water counts the area that was lawn, not the area that was green.
Is this program available if I have California Water Service (Cal Water)?
Cal Water customers in Cupertino, Los Altos, Mountain View, and Sunnyvale may be eligible for the Valley Water base rebate ($2/sqft), but Cal Water also runs its own separate turf rebate program. You cannot receive rebates from both programs for the same project. Contact both Valley Water and Cal Water to understand which program gives you a better rate before applying.
When does program funding run out?
The current program is funded through June 30, 2026, or until funds are depleted, whichever comes first. Valley Water does not publicly disclose the remaining balance. If you are planning a project, apply as early as possible. Call (408) 630-2554 to ask about current funding availability.
Are rebates taxable income?
Rebates of $2,000 or more may be taxable income as of January 1, 2026. Valley Water will ask you to submit a W-9 form and will issue a 1099 for the rebate amount. Consult a tax advisor if you have questions about how the rebate affects your tax situation.

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