American Canyon is in the market for more water.

City officials say that they are looking for sources beyond the North Bay Aqueduct, the state Department of Water Resources facility that provides water to several cities in the region.

The city's concerns stem from a lack of rainfall and a recent federal court ruling that could limit the amount of water pumped from the San Joaquin Bay-Delta because pumping kills a protected fish species, the Delta smelt.

American Canyon Public Works Director Robert Weil said last week the city has agreed to pay a $22,500 deposit to the State Water Contractors Association, an association of 27 California public water agencies, to gain rights to an 1,500 acre-feet of water to supplement its existing supplies.

The city could be refunded $15,000 if it decides not to buy the extra water, Weil said.

American Canyon buys water through the Napa County Flood Control and Water Conservation District, and the district has discussed the purchase of extra water with the State Water Contractors Association, according to Felix Riesenberg, principal water resources engineer with the Napa County Flood Control and Water Conservation District.

American Canyon's move comes just after the city of Napa decided to spend $60,000 for an option to buy an additional 4,000 acre feet of water in the spring.

American Canyon is looking at more water as part of a dizzying array of shifts in water policy.

The city is considering its first increase in water and sewer rates in seven years to address a long-standing financial imbalance in its delivery of those services.

Earlier this month, the Napa County Local Agency Formation Commission held that the city must provide water service to customers on a portion of unincorporated county land near the Napa County Airport.

The city is also considering a boost in the connection fees paid by new customers of its water and sewer service.

The city has begun a more detailed analysis of the water needs of proposed developments inside and outside the city limits, City Manager Rich Ramirez said Monday.