Lawn replacement rebates in Palo Alto

A lawn is the thirstiest thing in most Palo Alto yards. In summer it can use more water than everything inside the house combined. Replacing it with drought-tolerant plants, mulch and drip irrigation cuts that use sharply. The local water district will also help pay for the switch. The money is real, but so are the rules. Most people who lose a rebate do so because they started digging before approval.

This guide explains the program as Valley Water and the City of Palo Alto published it in fall 2026. Rates and caps change, sometimes mid-year, so treat the numbers here as a guide and confirm them in the program portal before you sign a contract. For the design side of a new garden, see our water-wise gardening guide.

Who runs the program

Valley Water, the Santa Clara County water district, runs the Landscape Rebate Program for the whole county. The City of Palo Alto partners with it rather than running a separate lawn rebate. The city's Ways to Save page sends residents to Valley Water's online portal for landscape conversion and irrigation upgrades. Applications, inspections and checks all go through Valley Water.

The program has several parts. Single-family homeowners mostly use two of them:

• Landscape Conversion Rebate for replacing approved high-water lawn (or a pool) with water-efficient landscaping.
• Irrigation Equipment Upgrade Rebate for qualifying smart controllers, nozzles and sensors.

A separate Lawn to Mulch Rebate exists, but Valley Water describes it as a program for commercial, institutional, industrial and multifamily properties with five or more units. The city also lists it only under its multifamily and business sections.

What it pays in 2026

The published figures do not line up perfectly, so here is each one with its source.

The reading that fits all of these is that Palo Alto is one of the cost-sharing areas where the city adds money on top of Valley Water's base rate. The city's $6,000 cap matches Valley Water's cost-sharing tier. Still, the portal is the only place that shows the rate that will apply to your application. Check it on the day you apply. The city's water programs line, (650) 329-2241, can help if the numbers do not match.

A quick example at the city's listed rate: a 1,000 square foot front lawn at $4 per square foot would come to $4,000, under the $6,000 cap. At the base rate it would be $2,000. Either way the rebate rarely covers a full professional installation, so get bids before you count on it.

The steps, in order

1. Create an account in Valley Water's online application portal.
2. Apply with photos of the lawn, a rough measurement of the area and a description of the site. Valley Water may schedule a pre-inspection.
3. Submit project details after the pre-inspection is approved, including a full plant list and a description of the new landscape and irrigation.
4. Wait for the Notice to Proceed. Do not remove grass or buy materials until you have it in writing.
5. Finish within 90 days of the Notice to Proceed.
6. Request a post-inspection and upload photos or receipts.
7. Get paid. Valley Water says checks go out 4 to 6 weeks after an approved post-inspection.

Funding runs until June 30, 2027 or until it is used up. Applications are handled in the order received. Valley Water also warns that a site denied for failing the initial eligibility check cannot reapply for three years.

Rules that decide whether you get paid

Valley Water publishes detailed Landscape Conversion requirements and updated them on July 1, 2025. Read the current version before you design anything. These are the points most likely to matter for a Palo Alto front yard:

• Plant coverage. The program's FAQ is organized around a 50 percent plant coverage rule for the converted area at maturity. Choose plants from its qualified plants list.
• Permeable surfaces. Since July 2025, permeable paving can make up no more than half of the converted area.
• No big slabs. Concrete pads larger than 24 by 24 inches are not allowed in the rebated area.
• No plastic. Plastic and other non-biodegradable weed barriers are not allowed.
• Irrigation. The new planting must be watered efficiently, typically with drip or no irrigation at all. Spray heads left over from the lawn usually have to be removed or converted.

If you are unsure whether a design will pass, Valley Water lists office hours with a water conservation specialist and a Design Assistance program. Its qualified plants list is a good starting point. Our native plants guide covers where to buy local species.

How people remove the lawn

Once the Notice to Proceed arrives you have 90 days, which is enough for most yards if you plan ahead. The two common methods are:

• Sheet mulching. Cut the grass short, cover it with plain cardboard (tape and labels removed), soak it and add several inches of wood chips. The grass dies in place over a few months and the soil keeps its structure. It is cheap and quiet but slow, so start soon after approval.
• Sod cutting. A rented sod cutter or a landscaper strips the turf. It is fast but you need a way to get rid of the sod. Bermuda grass in particular tends to return from roots left behind.

Avoid herbicides near creeks and storm drains. Lawn clippings and sod can go in the green cart in small amounts; our trash and recycling guide covers what fits. Call 811 before digging trenches for irrigation lines.

Timing and planting

Fall is the best season to plant the new garden. Apply in late summer, convert in fall and let winter rain water the new plants. A spring conversion works too but expect more hand watering through the first dry season. Leave room for growth: plant coverage is judged at maturity, so small plants spaced generously are normal.

Trees in or next to the lawn need care during removal. Roots of mature oaks and other protected trees can be damaged by trenching or heavy grading. The city's rules on root damage are strict. Read our tree permits guide before you dig near a large tree.

Other help that stacks

• Water Wise Outdoor Survey. Valley Water's free irrigation check is a good first step before you design anything.
• Rain capture. Rain barrels, cisterns and rain gardens earn separate rebates through the same portal, within the same $6,000 cap. See our rain barrels and graywater guide.
• Graywater. A laundry-to-landscape system can water the new planting with reused washer water.
• WaterSmart. The city's portal shows your use before and after the change, which is satisfying to watch in July.

Single-family yards are excluded from the state's ban on watering nonfunctional turf, so no homeowner has to remove a lawn. The rebate is a carrot, not a mandate. For background on the ban and the city's year-round watering rules, see our water conservation guide.

Frequently asked questions