The District provides water wholesaling, flood control, groundwater management and watershed stewardship on a countywide basis. The District owns and manages 10 local surface reservoirs and associated creeks and recharge facilities, manages the County's groundwater basins and 3 water treatment plants, imports water from the Central Valley Project and the State Water Project, and delivers recycled water to parts of the county. The District is also responsible for flood protection within the County. Its stewardship responsibilities include creek restoration and wildlife habitat projects, pollution prevention efforts and a commitment to natural flood protection.

The District provides potable water using groundwater for residential, commercial, and industrial uses. The District provides water for fire suppression as there are no other providers in the area.

The District provides domestic water distribution services to its customers. The District does not provide treatment, as all water is pretreated by the San Francisco Public Utilities Commission (SFPUC) and delivered through SFPUC's Hetch Hetchy Water System. The District has a water conservation program in conjunction with SCVWD. Recycled water is not available within the District's bounds.

The District provides water supply for natural groundwater recharge through reservoir storage and release. The reservoirs are designed to collect and store local surface water from Pacheco Creek and naturally occurring runoff. The District collects water and releases it to percolate downstream and raise groundwater levels.

The District provides retail water services to its residents. The District does not have a water conservation program, as customers reportedly minimize water use, due to the relatively high water rates. The District relies on local surface water for its supply. It pumps water directly from Los Gatos Creek under an agreement to purchase water from the San Jose Water Company, which holds pre-1914 water rights to the creek.