What does the Montecito Water District have to do with a massive housing project proposed in North County? On September 29, the district voted to approve a nonbinding letter of intent that would sell approximately 40 percent of its current state water entitlement to Solstra Communities California, the group aiming to build 4,000 homes on an expanse of rural land south of Orcutt. The project, Solomon Hills, would build a new community. … In a project description document submitted to the County of Santa Barbara, Solomon Hills’ development team says imported water will serve as the main domestic water supply, including water from California’s state water project and potentially the controversial Cadiz Water Project, which seeks to extract groundwater from the Mojave Desert and pipe it through a former oil pipeline. It also mentions a deal with the Montecito Water District.