The San Antonio Water Company, formed under the General Corporation Law is a non-profit mutual water company exempt from taxation under Section 501 (c) (12) of the Internal Revenue Code providing water to its shareholders. Formed and located in the original Colony Lands the Water Company is the second mutual water company to be incorporated in California. The Water Company delivers its water exclusively to its shareholders at cost.
As a mutual water company, the SAWCO was organized as a private non-profit corporation. By virtue of the fact that more than 70% of the shares are owned by municipalities, in 2004, courts determined that the Water Company is functionally a public entity subject to the Brown Act and Public Records Act. As a result, the Water Company adopted these acts and amended the By-Laws to include the Brown Act and Freedom of Information Act.