The Placer County Water Agency was created under its own state legislation entitled the "Placer County Water Agency Act," adopted in 1957 by the California State Legislature.  PCWA carries out a broad range of responsibilities including water resource planning and management, retail and wholesale supply of irrigation water and drinking water and production of hydroelectric energy.

The Agency is governed by a five-member board of directors, elected to four-year terms by voters residing within five geographical districts of Placer County. The Board of Directors meets twice monthly in regular session and holds special meetings as needed. The Board employs a General Manager to administer all Agency activities, services and employment, and a General Counsel to advise the Agency on legal and regulatory matters. The Agency employs 179 people.