Last night, the City Council voted to move forward with a "cash for grass" pilot program, which would pay people to replace their lawns with drought-resistant landscaping and drip irrigation systems.
The vote was unanimous.
"I think this will really help our residents make a difference in saving water," says City Councilman Kevin McCarty. "I think it's time that we, as a city, help incentivize action and conservation."
Under the pilot program, a resident can apply through the city's 3-1-1 program.
If approved, a resident can then submit receipts for new landscaping and irrigation systems to the city.
It's still unclear how much the rebate would be. But the city's Department of Utilities has already set aside $100,000 for the program.
The city is expected to start issuing rebates next month. The Department of Utilities expects the program to be very popular -- and plans for it to continue into next year as well.
California has received less than 60 percent of the rain and snow this water year that it normally gets. Water managers are warning the new water year may be just as bad.
New motors, screens, and some casing repairs are in the works for eight of Sacramento's water wells. Some of the wells are more than 400-feet deep.
A long-range U.S. government forecast shows the drought in California will stick around.
The drought has farmers cutting back on watering, but some San Joaquin County growers say less water can mean a better crop.
The City of Sacramento Department of Utilities reports Friday that city water customers saved more than one-billion gallons of water last month.