The City Council has approved the leasing of some of the city's allocated underground water to two neighboring cities.
The council authorized one-year leases of 1,000 acre-feet of water to Pico Rivera for $110,000 and 500 acre-feet to Downey for $53,985.
Cities in Los Angeles County each year are allotted a certain amount of water that they can pump from the ground. The unused portion can be leased to other cities. South Gate has been unable to use all of its water allocation because five of its wells, which supplied half of the city's water, were shut down due to chemical contamination. To augment the supply, additional water was purchased from the Metropolitan Water District.