Take two similar homes on septic in Desert Hot Springs, a few miles apart. When the sewer main reaches the first one, the State of California covers the construction, the connection, and the work of filling in the old tank. At the second, a document already recorded with Riverside County says a construction assessment will come due once the pipe is in the ground. Which situation a home is in comes down to where it falls on the Mission Springs Water District's subarea map.
The cost a buyer is most likely to miss is the Notice of Assessment. Once voters approve an Assessment District, MSWD records that notice on every parcel inside it with Riverside County. In the district's words, the purpose is "so that potential buyers understand that at some point, when we are ready to construct the sewer lines on that street, they will be responsible for the cost of construction."
According to MSWD's assessment district FAQ, the notice isn't a lien and there's nothing to pay when it's filed. Nothing happens until construction is finished. Then MSWD contacts whoever owns the property at that point, and that owner can pay the assessment in full or put it on the property tax bill on a 20-year payoff schedule.
So the bill goes to whoever is on title when the pipe is finished, which may be years after the notice was recorded. A seller who bought with the notice already attached may never get the bill. The next buyer might.
For a sense of scale, The Desert Sun reported in 2018 that one owner's notice in the AD-12 district showed a $4,124 assessment. It covered the sewer system, the connection, and street repairs, and could be paid right away or through property taxes over 20 years with interest. That figure is eight years old and belongs to one district. Use it to understand how the system works, not to estimate what a parcel will owe today.
Area M-2 works on a different model. The project area covers the northern part of Desert Hot Springs and the surrounding unincorporated Riverside County land, roughly bounded by San Gorgonio Street on the north, Dillon Road on the south, Yerxa Road on the east, and Avenida Gracia on the west. MSWD posts a parcel-level map at MSWD.org/M2.
MSWD's M-2 project FAQ says the district secured $68 million in State Water Resources Control Board grant funding for the Nancy Wright Regional Water Reclamation Facility, the Regional Conveyance Line, and the M-2 septic-to-sewer work. Under the grant agreement, the state covers "construction costs, septic abatement, and connection costs which would typically be paid by the homeowner."
The catch is how far the money goes. Current funding covers the first 298 properties, split into three phases. The remaining phases are waiting on a funding amendment from the state, which MSWD expects in winter 2026 or spring 2027. Being inside the M-2 boundary is a good sign, but it doesn't guarantee a parcel is in the funded group.
| Where the parcel sits | Who covers construction and hookup | What the owner should expect |
|---|---|---|
| Area M-2, first 298 funded parcels | State grant covers construction, septic abatement and connection | A monthly sewer service fee once connected |
| Area M-2, later phases | Pending a state funding amendment expected winter 2026 or spring 2027 | A timeline that depends on Sacramento |
| Parcels with a recorded Notice of Assessment | The owner of record once construction is complete | Pay in full or a 20-year payoff on the property tax bill |
| Future subareas in MSWD's long-range plan | Set when each subarea is built | Construction spread over roughly two decades |
According to MSWD's September 2026 General Manager's Report, the work got underway in a few steps:
The board's September 17 agenda included a recommended $1,429,387 amendment to Willdan's construction management contract for the M-2 project. The General Manager's Report also says the Regional Conveyance Line contractor, Downing Construction, finished its final work. MSWD says the Nancy Wright facility itself was completed in September 2024.
There's a second project in M-2 that matters to buyers. MSWD is replacing aging water lines and meters that currently sit in hard-to-reach rear-yard easements, and it's scheduling that work alongside the sewer so the same streets don't get dug up twice. If a home there has its meter behind the back fence, expect that to change. During construction, MSWD says to expect street work, temporary traffic control, noise, dust, and short-term changes to lane or driveway access. Access to homes stays open, and the streets get repaved afterward.
Wherever a parcel sits, a deadline comes with the sewer. Once sewer is available in an area, MSWD gives homeowners 90 days to apply for service, abandon the septic tank, and connect to the lateral. The district says extensions are possible, that it offers financial assistance programs, and that owners who can't make the deadline should call.
Abandoning a tank is a permitted job. In M-2, the owner submits the right-of-entry form and sewer application, and MSWD coordinates the lateral to the property line. The septic tank is pumped, crushed and filled, then gets a final inspection.
After that, sewer becomes a line item. The M-2 FAQ says connected owners should plan on a monthly sewer service fee and lists the current rate as $53.75, with rate structure details at MSWD.org/rates. The fee goes on the water bill until the next fiscal year starts. After that, owners can prepay or have it added to the annual property tax bill. In April 2026, MSWD's board adopted Resolution 2026-02 to collect fiscal 2026–27 sewer user fees on the county tax roll. That's a separate charge from any construction assessment. Someone reading a property tax bill in Desert Hot Springs could be looking at either one, or both.
The program exists because of what's underground. MSWD says the M-2 project alone is expected to keep about 37 million gallons of wastewater a year from going through septic systems into the local groundwater basin. A 2004 Colorado River Basin Regional Water Quality Control Board staff report quotes California Water Code §13281 as requiring the board, subject to resources, to prohibit septic discharges on parcels under one-half acre over the Mission Creek or Desert Hot Springs aquifers when sewer is available. It defines available as a sewer line or sewer-connected building within 200 feet. The same report notes that the Mission Creek aquifer supplies domestic water to Desert Hot Springs and nearby communities.
MSWD sets the order using criteria it first established in 1998 and expanded in 2006. These include how many septic tanks sit near drinking water wells, septic failures in an area, how close an area is to existing sewer, housing density, and the Hot Water Zone.
The long-range list is now set. On June 15, 2026, MSWD approved its Groundwater Quality Protection Program septic-to-sewer project, covering subareas A, D-3, G, H, I, J-2 and K plus the North Indian Canyon Drive and I-10 corridor. The state CEQA filing describes 146,200 linear feet of 8-inch sewer pipeline, 2,600 parcel connections and more than 2,040 septic abatements, built over about 20 years at roughly one subarea every 30 months. For a home in one of those subareas, the sewer is planned, but the year it arrives depends on where that subarea falls in the sequence, which could be anywhere across two decades.
Does a Notice of Assessment mean I owe money at closing? MSWD says the notice is advance warning, not a lien to pay off when it's filed. The assessment is billed after construction is complete. How it's handled in a particular sale is a question for your escrow officer and attorney.
Can a homeowner apply directly for state septic-to-sewer money? No. The State Water Board's septic-to-sewer funding page says only government entities, tribes or qualifying nonprofits can apply. Individual septic owners can't, which is why grants like M-2's come through MSWD.
How do I know if a parcel is in M-2's funded first group? Start with the parcel map at MSWD.org/M2, then call MSWD to confirm the phase, since current funding only reaches the first 298 properties.
This post is general information, not legal, tax or financial advice. Before you rely on any of it, confirm the specifics for your parcel with MSWD, your escrow officer, and the right professional.
At Backbeat Homes, we pull the sewer status, the recorded notices, and MSWD's subarea map before we price a Desert Hot Springs home or write an offer on one, so the bill that comes with the pipe doesn't surprise anyone. If a septic home in the north end is on your list, let's look it up together. Work With Us.
Stay up to date on the latest real estate trends.
selling my home