SC By SCWS Team | February 2, 2026 | 15 min read
Commercial Well Drilling Permits in California
Planning a commercial well for your California business? Understanding the permit process is critical to avoiding costly delays and legal issues. Commercial wells face more scrutiny than residential wells, with additional requirements that vary by location, intended use, and groundwater basin status. This guide walks you through everything you need to know about commercial well drilling permits in California.
📋 Commercial Well Permit Quick Facts
- • Basic permit cost: $300 - $1,500 (county drilling permit)
- • Total permitting costs: $1,000 - $25,000+ (depending on complexity)
- • Timeline: 2 weeks to 18 months (varies significantly)
- • Key agencies: County DEH, GSA (SGMA basins), State Water Board (public supply)
- • Required contractor: C-57 licensed well driller
Who Needs a Commercial Well Permit?
In California, "commercial" wells include any non-residential water well used for business purposes. This encompasses:
- Agricultural operations: Farms, ranches, vineyards, orchards, nurseries
- Industrial facilities: Manufacturing plants, processing facilities
- Commercial properties: Office buildings, retail centers, hotels
- Hospitality businesses: Restaurants, wineries, breweries
- Multi-unit developments: Apartment complexes, mobile home parks
- Public facilities: Schools, churches, community centers
- Recreational facilities: Golf courses, campgrounds, RV parks
⚠️ Important Distinction
Wells serving the public (customers, guests, employees beyond the owner) may be classified as "public water systems" and face additional State Water Board oversight and testing requirements.
Types of Permits Required
1. County Well Drilling Permit (Required for All Wells)
Every well in California requires a drilling permit from the county environmental health department. This basic permit ensures the well is constructed to state standards.
County Permit Requirements:
- ✓ Application form with property information
- ✓ Site plan showing proposed well location
- ✓ Setback compliance (distances from septic systems, property lines, etc.)
- ✓ Licensed C-57 contractor information
- ✓ Application fee ($300-$1,500 depending on county)
- ✓ Proof of property ownership or authorization
For specific requirements in your area, see our guides on San Diego County well permits and California well permit requirements.
2. CEQA Environmental Review (Often Required)
The California Environmental Quality Act (CEQA) may require environmental review for commercial wells. The level of review depends on the project's potential environmental impact:
| CEQA Level | When Required | Timeline | Cost |
|---|---|---|---|
| Exempt | Minor projects, existing facilities | Immediate | $0 |
| Negative Declaration | No significant impact expected | 2-4 months | $500-$3,000 |
| Mitigated Neg Dec | Impacts can be mitigated | 4-8 months | $2,000-$10,000 |
| EIR (Full) | Significant environmental impact | 12-24 months | $25,000-$100,000+ |
Most commercial wells qualify for exemption or negative declaration. Full Environmental Impact Reports (EIRs) are rare but may be required for large agricultural projects in sensitive areas.
3. Groundwater Sustainability Agency Approval (SGMA Basins)
Under the Sustainable Groundwater Management Act (SGMA), groundwater basins must achieve sustainability. In managed basins, commercial wells may require:
- GSA notification or approval: Many basins require advance notice or explicit approval
- Metering requirements: Commercial wells often must install water meters
- Pumping fees: Ongoing fees per acre-foot extracted
- Pumping allocations: Some basins cap how much you can pump
- Offset requirements: Critically overdrafted basins may require retiring existing pumping rights
🚨 Critical Warning: SGMA Moratoriums
Several California groundwater basins have moratoriums on new wells, particularly commercial and agricultural wells. Before investing in site acquisition or business planning, verify well feasibility with the local Groundwater Sustainability Agency.
4. Public Water System Permit (If Serving the Public)
If your well will provide water to the public, you may need a permit from the State Water Resources Control Board's Division of Drinking Water. This applies to:
- Wells serving 15+ connections (homes, units, businesses)
- Wells serving 25+ people daily for 60+ days per year
- Schools, daycares, restaurants, hotels
- Campgrounds, RV parks, mobile home parks
🏢 Public Water System Requirements
Initial Permit
$1,000 - $5,000+
Engineering review and state approval
Annual Fees
$500 - $2,000+
Ongoing regulatory oversight
Water Testing
$2,000 - $5,000/year
Required monitoring and reporting
Certified Operator
Required
D1/T1 certified water operator
5. Local Planning and Zoning Approval
Depending on your location and project scope, you may need additional local approvals:
- Use permit: If the commercial use isn't allowed by-right in your zone
- Site plan review: For new commercial developments
- Grading permit: If significant earthwork is needed for well access
- Building permit: For pump houses or well enclosures
The Commercial Well Permit Process
Here's a step-by-step guide to obtaining commercial well permits in California:
Step 1: Preliminary Research (1-4 weeks)
- • Identify your groundwater basin and its SGMA status
- • Contact the local GSA (if applicable) about new well policies
- • Review county well permit requirements
- • Determine if public water system permit is needed
- • Verify zoning allows your intended use
Step 2: Site Assessment (1-2 weeks)
- • Hire a licensed well contractor for site evaluation
- • Verify setback requirements can be met
- • Review neighbor well logs for expected depth/yield
- • Consider hydrogeological study if required or prudent
- • Document access for drill rig
Step 3: Pre-Application Consultation (Optional but Recommended)
- • Meet with county environmental health staff
- • Discuss project scope and potential issues
- • Clarify CEQA requirements
- • Get preliminary fee estimates
- • Identify additional permits needed
Step 4: Application Preparation (1-4 weeks)
- • Complete county well permit application
- • Prepare site plan and setback documentation
- • Gather property ownership documentation
- • Compile contractor licensing information
- • Prepare CEQA documentation if required
- • Complete GSA application if in SGMA basin
Step 5: Application Submittal and Review (2-12+ weeks)
- • Submit applications with required fees
- • Respond to any requests for additional information
- • CEQA review period (if applicable)
- • GSA review period (if applicable)
- • Address any objections or conditions
Step 6: Permit Issuance and Drilling
- • Receive approved permit with conditions
- • Schedule drilling with licensed contractor
- • Required inspections during construction
- • Well completion report filing (within 60 days)
- • Final inspection and well activation
Permit Costs by County
Commercial well permit fees vary significantly across Southern California counties:
| County | Basic Permit Fee | Commercial Surcharge | Inspection Fee |
|---|---|---|---|
| San Diego | $465 - $865 | Varies by use | Included |
| Riverside | $400 - $700 | $100 - $300 | $75 - $150 |
| San Bernardino | $350 - $600 | $150 - $400 | $100 - $200 |
| Orange | $500 - $900 | Varies | Included |
| Los Angeles | $600 - $1,200 | $200 - $500 | $150 - $300 |
Note: Fees change periodically. Contact your county environmental health department for current rates.
Common Commercial Well Permit Challenges
Challenge 1: SGMA Restrictions
The most significant barrier to new commercial wells is SGMA compliance. Solutions may include:
- Water offset credits: Purchase pumping rights from willing sellers
- Water banking: Store water during wet years for use during restrictions
- Efficiency upgrades: Reduce water demand to fit within allocations
- Alternative supplies: Combine well water with recycled water or surface water
Challenge 2: Setback Requirements
Commercial properties often have limited space. If you can't meet standard setbacks, options include:
- Variance application: Request reduced setbacks with justification
- Enhanced construction: Additional sealing/casing to prevent contamination
- Septic system modification: Move or upgrade septic to increase setback
- Alternative well location: Consider wells in different positions on property
Challenge 3: Public Water System Classification
Avoiding public water system classification when possible can save significant ongoing costs. Strategies include:
- Limit connections: Stay below 15 service connections if feasible
- Seasonal operation: If serving <25 people for <60 days/year, you may be exempt
- Employee-only use: Wells serving only employees (not customers) may have different classification
- Separate systems: Multiple smaller systems instead of one large one (consult legal counsel)
💡 Pro Tip
If you're building a commercial facility that might trigger public water system requirements, consult with both the State Water Board and a water systems engineer during the design phase. Proper planning can sometimes allow system design that reduces regulatory burden while maintaining safety.
Timeline Expectations
Realistic timelines for commercial well permits in California:
⏱️ Permit Timeline by Project Type
Simple Commercial Well
2-6 weeks
Non-SGMA basin, no CEQA, no public supply
SGMA Basin Well
2-6 months
GSA approval required, possible allocation issues
CEQA Review Required
4-12 months
Environmental review adds significant time
Public Water System
6-18 months
State Water Board approval, engineering review
Documentation Checklist
Prepare these documents before applying for commercial well permits:
Essential Documents:
- ☐ Completed county well permit application
- ☐ Property deed or owner authorization letter
- ☐ Site plan (to scale) showing proposed well location
- ☐ Setback diagram showing distances to septic, property lines, other wells
- ☐ C-57 contractor license verification
- ☐ Proof of contractor insurance
- ☐ Permit fees (check or credit card)
Additional Documents (May Be Required):
- ☐ CEQA exemption documentation or environmental assessment
- ☐ GSA application and supporting materials
- ☐ Hydrogeological report or well siting study
- ☐ Water demand calculations
- ☐ Public water system application (State Water Board)
- ☐ Engineering plans (for complex systems)
- ☐ Zoning verification or use permit
Consequences of Unpermitted Wells
Drilling without proper permits is illegal and creates serious problems:
💸 Financial Penalties
Fines up to $1,000+ per day the well operates unpermitted
🔨 Destruction Orders
Required well destruction at owner's expense ($5,000-$15,000+)
🏠 Property Sale Issues
Title companies flag unpermitted wells; buyers walk away
💧 Water Rights Loss
Unpermitted pumping may not establish water rights
⚖️ Liability Exposure
If well water harms anyone, liability is greatly increased
📋 Insurance Issues
Business insurance may not cover unpermitted well problems
Frequently Asked Questions
What permits do I need for a commercial well in California?
Commercial wells in California require a county well drilling permit, and depending on location and use, may also need CEQA environmental review, Groundwater Sustainability Agency approval in SGMA basins, water quality permits from Regional Water Quality Control Board, and local planning/zoning approval. Public water supply wells have additional State Water Board requirements.
How much does a commercial well permit cost in California?
Commercial well permit costs vary widely: County drilling permit ($300-$1,500), CEQA review if required ($500-$5,000+), GSA fees in SGMA basins ($200-$2,000+), water system permit for public supply ($1,000-$5,000+), plus potential engineering and hydrogeological studies ($2,000-$15,000). Total permitting costs typically range from $1,000 to $25,000+ depending on complexity.
How long does it take to get a commercial well permit in California?
Standard commercial well permits take 2-8 weeks. However, projects requiring CEQA review add 3-12 months, SGMA basin approval can add 1-6 months, and public water supply permits add 2-6 months. Simple commercial wells in non-SGMA areas may be permitted in 2-4 weeks, while complex projects can take 12-18 months.
What is the difference between a commercial and domestic well permit?
Commercial well permits typically require more documentation, may trigger CEQA review, often need water quality testing, have higher fees, may require engineering reports, and in SGMA basins face stricter scrutiny than domestic wells. Commercial wells serving the public have additional State Water Board requirements.
Do I need a permit to deepen an existing commercial well?
Yes, deepening an existing commercial well requires a modification permit in California. The process is similar to a new well permit but may be faster if the well is already documented. Some counties and GSAs treat significant deepening as a new well for regulatory purposes.
What is SGMA and how does it affect commercial well permits?
SGMA (Sustainable Groundwater Management Act) requires groundwater basins to achieve sustainability. In critically overdrafted basins, new commercial wells may require GSA approval, metering, pumping fees, or may face moratoriums. Some basins require offset pumping (retiring existing wells) to permit new ones.
Can my well contractor handle the permit process?
Licensed well contractors typically handle standard county well permits as part of their service. However, complex commercial permits involving CEQA, public water supply requirements, or SGMA compliance may require additional consultants such as environmental firms, hydrogeologists, or water engineers. A good contractor can guide you through the process.
What happens if I drill a commercial well without a permit?
Drilling without a permit is illegal and carries serious consequences: fines up to $1,000+ per day, required well destruction at owner's expense, inability to sell the property, loss of water rights claims, and potential criminal charges. Unpermitted commercial wells can also create liability issues if water quality problems affect customers or employees.
Need Help Navigating Commercial Well Permits?
Southern California Well Service has over 20 years of experience with commercial well projects throughout San Diego, Riverside, and surrounding counties. We understand the permitting landscape and can guide your project through the process efficiently. Contact us for a consultation about your commercial well needs.
