At its June 23, 2010 meeting, OMWD's Board of Directors voted unanimously to relinquish its contract rights with Poseidon Resources, developer of the Carlsbad Desalination Project. This vote supported San Diego Count Water Authority negotiations with Poseidon to purchase desalinated seawater for the benefit of the entire region.

The City of Carlsbad followed suit in August 2011, reaching an agreement with the Water Authority that that allows the Water Authority to begin negotiating with Poseidon for the purchase of water from the Carlsbad Desalination Project.

To further diversify its water supply portfolio, OMWD has also begun exploring the feasibility of a brackish groundwater desalination facility within its service area.