CA Water Code Section 72303

Any district, the territory, or any portion thereof, of which is included within a metropolitan water district, shall be entitled, without penalty or sanction from the metropolitan water district, to purchase or acquire water to serve any territory within the district, whether or not the territory is within the metropolitan water district, from the following specified sources without the water being deemed an acquisition or purchase of water from the State Water Resources development system:

(a)

Recycled water, as defined in Section 13050, regardless of the source of the water prior to its use and recycling.

(b)

Water produced incidentally to the exercise of bona fide property rights to divert or pump local waters, regardless of the origin of the waters.