A reshaped agreement for the Kern County Water Agency to provide water to a housing development 200 miles to the north erased $14 million in debt, giving residents water certainty into the future just days before KCWA had threatened to shut off their supplies. … The letter of intent, provided to SJV Water Monday, was signed May 28, just days before the agency said it would cut off Western Hills. The water entities are still working out a formal contract. … The new, draft deal caps more than a year of back and forth between the entities over Western Hills’ skipped water payments. How a Kern County water agency ended up supplying a housing development 200 miles to the north is a complex, somewhat convoluted, deal going back 28 years.