California Water Code § 60221

Water Code
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Without being limited to the following enumerations, a district may, among other things but only for the purposes of replenishing the groundwater supplies within the district: (a) Buy and sell water; (b) Exchange water; (c) Distribute water to persons in exchange for ceasing or reducing ground water extractions; (d) Spread, sink and inject water into the underground; (e) Store, transport, recapture, recycle, purify, treat or otherwise manage and control water for the beneficial use of persons or property within the district. (f) Build the necessary works to achieve ground water replenishment.

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