Santa Margarita’s New Drinking-Water Storage Tank Replaced a Leaking 1966 Facility for $935,000

SANTA MARGARITA, Calif. — October 31, 2026. A major improvement to the unincorporated community’s water infrastructure is complete, according to San Luis Obispo County Public Works: a leaking, aging storage tank was replaced with a new welded-steel tank in 2025.

The county’s current public works project directory identifies the County Service Area 23 Santa Margarita Bolted Water Tank Replacement Project and states that the old storage tank dated to 1966. It had a capacity of 157,500 gallons and had begun leaking near the end of its expected useful life.

What was upgraded

The county replaced the bolted tank with a welded-steel reservoir designed to meet modern building and seismic standards. Public Works says the new facility improves water-system resilience and helps maintain emergency water capacity for firefighting in the Santa Margarita area.

The county lists Crosno Construction as the contractor and a total completed project cost of $935,000, with funding from the federal American Rescue Plan Act.

Why it matters

Santa Margarita relies on a shallow local groundwater basin for its community water supply. The county’s CSA 23 information page says the local advisory group considers water supply alongside street lighting, drainage and fire-safety vegetation concerns.

Replacing an old tank addresses storage-system reliability, but this announcement alone does not establish new water rates, changes to source-water quality or the completion of every previously discussed waterline improvement.

How to follow water-system decisions

Residents may participate in the CSA 23 advisory group, which the county normally schedules for the second Thursday of most months at the Santa Margarita Community Hall. Confirm meeting dates before attending and consult county notices for future proposals.

Illustrative photo: Phil Hearing / Unsplash. Water-storage structure at another location, not the new Santa Margarita tank.

Sources: SLO County Public Works, completed tank project; CSA 23 community water services.

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