On September 16, 2014, a three‐bill legislative package was signed into law  known as the Sustainable Groundwater Management Act (SGMA). SGMA requires groundwater basins designated as high or medium priority to develop groundwater sustainability plans (GSP) by 2020 and reach sustainability by 2040. Landowners in the Cawelo Water District area rely on the Kern County Subbasin portion of the Tulare Lake Basin which is designated a high priority basin.

Cawelo Water District formed the Cawelo Groundwater Sustainability Agency (CGSA) to represent the local landowners during the GSP development process and to coordinate SGMA compliance efforts with other Kern County GSAs.