The Metropolitan Water District of Southern California has embarked on a major reorganization and a series of cost-cutting measures, partly in response to cost overruns for the construction of Eastside Reservoir in Riverside County. In July, MWD's new general manager, Ronald Gastelum, unveiled the first phase of a series of organizational reforms, calling for $10 million in immediate cost savings and perhaps as much as $100 million in cost savings in the coming years. Like the Calfed negotiations, the MWD's internal travails will not directly affect land-use issues in Southern California. But the agency supplies almost all the wholesale imported water in metropolitan Los Angeles and San Diego, providing water to 27 cities and water districts. Its boundaries have largely determined the boundaries of urban growth in Southern California over the past half-century. In recent years, the agency has had a series of internal problems, including a dispute with the San Diego Water Authority over whether San Diego will be able buy water directly from farmers in the Imperial Valley and have it shipped through MWD's Colorado Aqueduct. San Diego is MWD's biggest customer, and the possible loss of San Diego business could imperil the agency's capital program. The agency's largest capital project is the $2 billion, six-square-mile Eastside Reservoir project near Hemet, which is designed to increase surface water storage for the agency. Gastelum, a former official with the waste-management firm of BKK Corp., was appointed in March to replace John Wodraska, the MWD's previous general manager. The cost-cutting effort was initiated in the face of high-pressure criticism from the state Legislature regarding cost overruns and other allegations of mismanagement.