Water Study to Delay Building of 4,000 Homes

The state Public Utilities Commission on Thursday ordered the Valencia Water Co. to conduct a detailed study of its water supplies, postponing construction of more than 4,000 homes in the booming development area.

The five-member commission ratified a judge’s decision that the water company, owned by Newhall Land & Farming Co., the area’s major landowner, must prove that it has sufficient supplies to expand its territory without jeopardizing the supply and quality of water for current customers.

The action is expected to delay the start of construction for six months to a year on three major developments in a hillside area north of the Santa Clarita city boundary and the Valencia Town Center.

The projects, all located along the San Francisquito Canyon creek area and all recently approved by Los Angeles County, are the North Valencia II and West Creek, both owned by Newhall Land, and Tesoro del Valle, owned by SunCal Cos. of Orange. In some areas, grading is underway, even though the water issue is not settled. The decision also affects a few other smaller projects, such as Mountain View, that are outside Valencia but served by the water company.

Marlee Lauffer, spokeswoman for Newhall Land, said she is not certain of the time implications of the ruling, but that the company “will start work immediately” to provide additional environmental documentation to the PUC. Developers of the Tesoro project could not be reached Thursday for comment.