A new wastewater treatment plant in Loreto Bay began operations this month as part of a state pilot program to recycle water for irrigation and reduce pressure on the region’s strained aquifer. The plant, built through a partnership between the Loreto municipal government and Baja California Sur’s state water authority, can process up to 10 liters per second of wastewater from the Loreto Bay resort community and surrounding colonias.
Loreto’s Aquifer Has Lost 40% of Capacity Since 2005
The new facility addresses a water crisis decades in the making. Loreto sits on the San Juan Bautista aquifer, which CONAGUA, Mexico’s national water commission, has classified as overexploited since 2014. A 2019 CONAGUA technical study found the aquifer’s recharge rate was roughly 12.5 million cubic meters per year, while extraction exceeded 17 million cubic meters. That deficit has persisted for years.
OOMSAPAS Loreto, the municipal water utility, has struggled to keep pace with demand from a growing population and expanding tourism infrastructure. The Loreto Bay development, originally conceived in the early 2000s as a large-scale resort community on Bahía de Loreto’s southern shore, added thousands of residential units to an area that historically relied on a small desert aquifer. By 2010, the development had become a flashpoint in debates over sustainable growth in Baja California Sur’s smaller coastal towns.
Saltwater intrusion has compounded the problem. Wells closest to the coast have shown elevated salinity readings since at least 2012, forcing OOMSAPAS to rotate pumping schedules and drill replacement wells farther inland. Residents in several Loreto Bay sections have reported mineral-heavy water that damages appliances and requires additional filtration. The aquifer’s estimated usable volume has dropped roughly 40% since 2005, according to CONAGUA monitoring data.
Baja California Sur Governor Víctor Manuel Castro Cosío announced the pilot program in late 2024. The state committed funding for small treatment plants in three municipalities: Loreto, Comondú, and Mulegé. Loreto Bay’s plant is the first to come online. The technology uses a biological treatment process that produces water clean enough for landscape irrigation and agricultural use, though not for drinking.
Treated Water Will Irrigate Loreto Bay’s Golf Course and Green Spaces
The plant’s initial output will go to irrigating Loreto Bay’s golf course and common green areas, which currently consume potable water from the municipal supply. That swap alone could free up an estimated 2.5 liters per second of drinking water for residential use, according to figures the Loreto municipal government presented at the plant’s inauguration ceremony on June 6.
For homeowners in Loreto Bay, the change could eventually affect water bills. OOMSAPAS Loreto charges residential users on a tiered rate system, with base rates starting around 180 pesos (about $10 USD) per month for low consumption. But the utility has raised rates three times since 2021 to cover infrastructure costs. If recycled water reduces the strain on extraction wells, municipal officials have suggested rate increases could slow, though no formal commitment has been made.
The plant also has implications for the broader Loreto real estate market. The town has become an increasingly popular destination for American and Canadian retirees, drawn by lower costs than Los Cabos and proximity to Bahía de Loreto National Marine Park. Property sales in the Loreto Bay community have picked up since 2022, with homes listing between $200,000 and $450,000 USD. Water availability is a persistent concern in buyer due diligence, and a functioning recycling system addresses one of the most common questions prospective buyers raise.
Construction crews are still completing secondary distribution lines that will carry treated water from the plant to irrigation points across the resort community. Full distribution is expected by August 2025. A second phase, which would extend treated water service to agricultural parcels on Loreto’s southern periphery, is planned for early 2026 but has not yet received funding approval.
The Comondú plant, the second in the state pilot program, is scheduled to break ground in September 2025 near Ciudad Constitución. If all three plants perform as designed, Governor Castro Cosío’s administration has indicated the program could expand to Los Cabos, where OOMSAPAS Los Cabos faces even more acute water shortages driven by hotel and resort development.
The next public progress report on the Loreto Bay plant is scheduled for the Loreto municipal council’s July 2025 session. This story was first reported by El Sudcaliforniano.

