The cost for water in California is increasing by $9.7 billion, and that’s despite the state’s drought and severe drought conditions, according to a new report from the state Department of Water Resources.

The agency released the findings Thursday, with the cost of drinking water up $6.3 billion.

It’s an increase of 2.2 percent over the previous year, but is still well below the national average of 8.4 percent.

The state also added $1.2 billion to the deficit last year, largely because of the cost to drill for water, said Steve Woosley, a senior water economist at the state department.

“The increase is not all because of drought,” he said.

“Some of it is because of other factors.”

The water agencies report is based on the latest information available from the federal government, which provides data on water usage in the state and how much water is available.

It is an update of an earlier report from last year that included data from the Environmental Protection Agency, which also uses water agencies to report.

The EPA reports that California uses about 14 percent of its water supply in drinking water, the third highest percentage in the country, behind only Hawaii and Vermont.

It uses about 16 percent of water for irrigation.

California has seen its water use go up in recent years because of a drought and drought conditions.

California’s water budget was $14.2 million in 2016, up from $13.8 million in 2015.

The budget includes about $3 billion in federal funds, about $500 million in state funds and $150 million in private funds.

The report says that for the last three years, water agencies in the Golden State have used about 4.4 billion gallons of water, or an average of 7.3 million gallons per day, but this year it is up to 8.6 billion gallons.

The biggest increase in water usage was in the Central Valley, where water agencies have used 8.7 trillion gallons, a 9.3 percent increase over the same time last year.

The increase was particularly pronounced in the Sierra Nevada, where the state has used an average 5.9 trillion gallons of the water, a 4.8 percent increase.

The water districts are also getting a bigger share of the state budget.

California, which has about 40 million people, has been hit hard by the drought and by the rise in the cost for supplies.

Woos, the senior water analyst, said the new report is not just an indication of how much of the budget will be used to fund water use in the coming years.

“California has a long and important history of water conservation and it has been one of the major drivers of the overall recovery in the United States,” he told ABC News.

“We are still seeing this year’s growth in water use, and we are not only continuing to use water in a different way but we are adding water that was previously not available.”

Woos said the budget is likely to keep increasing in the future, as the amount of water that is available in California continues to increase.

“It’s not that there’s a lack of water,” he added.

“There’s a lot of water.”