Potter Valley, CA Real Estate & Homes for Sale
By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.
Potter Valley is an unincorporated farming valley in inland Mendocino County, California, northeast of Ukiah off State Highway 20, with ranches, orchards, vineyards and rural homes. Sales are too few for a meaningful median; the Mendocino County median was $480,000 in September 2026 (C.A.R.).
The valley’s irrigation water comes from the Eel River through PG&E’s century-old Potter Valley Project, which PG&E has applied to surrender and dismantle. Water is the first thing to understand before you buy here.
- County
- Mendocino County
- Government
- Unincorporated (county rules)
- ZIP code
- 95469
- County median price
- $480,000 (Sep 2026, C.A.R.)
- Irrigation water
- Potter Valley Irrigation District
- Wine appellation
- Potter Valley AVA (1983)
Potter Valley homes for sale
Listings in Potter Valley appear below. Few properties come up in a given month, so it’s worth setting up a property search that also covers Redwood Valley and the north end of the Ukiah Valley, filtered by acreage and water source.
What do homes in Potter Valley sell for?
$480,000
September 2026, C.A.R.
$619,818
3 months to September 2026, Redfin
$538,267
August 2026, Redfin
There isn’t a reliable Potter Valley median to quote. Redfin’s page for ZIP 95469 counted only a few sales in the three months to September 2026, and its own summary and tiles disagree on the median ($460,000 in one place, $170,000 in another) and on how many homes sold (Redfin). When one ranch, one house on a small lot or one bare parcel can each be “the” sale of the quarter, a median says little.
| Measure | Figure | Period and source |
|---|---|---|
| Potter Valley, ZIP 95469 | Too few sales for a meaningful median | 3 months to September 2026, Redfin |
| Redwood Valley, ZIP 95470 (nearest comparable) | $619,818 median; 6 sales | 3 months to September 2026, Redfin |
| Ukiah, ZIP 95482 | $538,267 median; 63 median days on market | August 2026, Redfin |
| Mendocino County | $480,000 (up 1.4% year over year) | September 2026, C.A.R. |
To price a Potter Valley property, we use individual comparable sales from the valley and its neighbors over a longer window, adjusted for acreage, irrigation service, wells, outbuildings and plantings. Land whose value rests on summer PVID water deserves a different price from land that works on wells or winter water.
Where is Potter Valley, and who sets the rules?
Potter Valley sits in Mendocino County, north of State Highway 20 between US-101 and the Lake County line, on the East Fork of the Russian River, which carries water from the Potter Valley powerhouse south to Lake Mendocino. The federal wine appellation named for the valley starts at the Mendocino–Lake county line, and Highway 20 forms part of its southern edge. There’s no city government, so the county’s Department of Planning and Building Services handles zoning, building and septic permits.
Two direct consequences for a buyer:
- Transfer tax: only Mendocino County’s documentary transfer tax applies, at $1.10 per $1,000 of value. The half-rate city taxes collected in Ukiah and Willits don’t reach this far.
- Guest rentals: stays of 30 days or less owe the county’s 10% transient occupancy tax plus a 1% lodging assessment. The inland zoning code allows renting up to two rooms as an accessory use, but needs a use permit when the parcel has no frontage on a publicly maintained road.
Our Mendocino County real estate guide covers the county-wide rules in more depth.
What is happening to the Potter Valley Project dams?
The Potter Valley Project is a PG&E hydroelectric system on the Eel River and the East Fork of the Russian River, in Lake and Mendocino counties. Water stored behind Scott Dam in Lake Pillsbury is released down the Eel, diverted at Cape Horn Dam about 12 miles downstream, and carried through a tunnel to the Potter Valley Powerhouse. Some of that water goes into Potter Valley Irrigation District canals; the rest flows down the East Fork into Lake Mendocino (Russian River Flood Control District).
| Date | What happened |
|---|---|
| 1908 | Cape Horn Dam and Van Arsdale Reservoir completed; powerhouse built at the north end of the valley |
| 1921–1922 | Scott Dam completed and the first federal license issued |
| 2019 | PG&E tells the Federal Energy Regulatory Commission (FERC) it won’t seek a new license |
| 2021 | A transformer bank fails; in March 2023 PG&E says it won’t be replaced, ending power generation |
| April 14, 2022 | The license expires; the project runs on annual licenses |
| July 25, 2025 | PG&E files its surrender application and decommissioning plan with FERC |
| December 2025 | The U.S. Department of Agriculture asks FERC to reject or pause the application |
| May 22, 2026 | FERC issues its first scoping document; meetings follow in Ukiah on June 23–24 |
| September 18, 2026 | Scoping comments close; FERC will now prepare its environmental review |
PG&E’s plan, as FERC summarises it, is to dismantle Scott Dam, decommission Cape Horn Dam except for the parts needed for a new diversion, and restore the land that Lake Pillsbury and Van Arsdale Reservoir now cover (FERC). PG&E describes the removals as eventual and has given no construction years. Sonoma Water’s planning assumption is annual licenses until 2035, with the dams gone and the replacement diversion running after that; treat that year as a planning figure, not a schedule.
Irrigation water: the Potter Valley Irrigation District
The Potter Valley Irrigation District (PVID) takes part of the water that passes through the powerhouse and delivers it by rotation, normally every 12 to 14 days. Its contract with PG&E is for 19,000 acre-feet a year, but in the 2021 drought it received only 9,000. PVID’s own appropriative water right is registered as 1950, and the state’s 2021 curtailment cut-off date was 1949, one year ahead of it. In 2021, the valley’s own right didn’t protect it.
What changes after the dams come out
The replacement is the New Eel-Russian Facility, which the Eel-Russian Project Authority would build at the Cape Horn Dam site, reusing the tunnel with a pump station. It is designed to divert during higher flows in fall, winter and spring, not in summer. A February 2025 agreement among the Eel and Russian River parties would cut average diversions from about 40,000 to about 35,000 acre-feet a year. Diversions averaged about 150,000 acre-feet a year from 1922 to 2006, so most of the reduction has already happened.
Growers’ main worries, as reported in January 2026, are the cost of building storage to hold winter water for summer use and the chance that less surface water means less groundwater recharge (Agri-Pulse). A Jacobs Engineering groundwater and geophysical study has looked at possible storage inside the valley, and its findings were presented at a town hall in November 2024 (PVID).
On any irrigated Potter Valley parcel, ask PVID in writing whether the parcel is served, how many acre-feet it has used in recent years and at what rate (customers paid $35 an acre-foot after the June 2025 increase), and what the district expects once summer diversions end. Don’t price irrigated acreage on past water deliveries alone.
Ranch, orchard and vineyard land
PVID describes the valley’s farms as producing wine grapes, pears, grass-fed cattle, sheep and other products worth more than $34 million a year. The checks below are written for that kind of property: pasture and hay ground, orchards, vineyard blocks, and the homes and barns that go with them.
The Potter Valley AVA
Potter Valley has its own federal wine appellation, established by T.D. ATF-151 on October 13, 1983 (27 CFR §9.82). Its boundary is drawn on township, range and section lines from the Mendocino–Lake county line, with one leg following Highway 20, rather than on an elevation contour, so check a specific parcel against the legal description. For vineyard deals, see our vineyard due diligence checklist.
What to check on a ranch or farm parcel
- Water rights and wells: separate the PVID service from any well, spring or creek right, and get the well log and a recent flow test.
- Septic: a home outside a sewer system needs a county-permitted septic system; ask for the permit history and have it inspected.
- Access: confirm whether the road is county-maintained or private, and whether there’s a recorded road agreement. It also decides whether a room rental needs a use permit.
- Fire zone and insurance: look up the Fire Hazard Severity Zone on the state map and get insurance quotes in the first days of escrow. Where AB 38 applies, the seller provides a defensible-space inspection or the buyer agrees to complete the work within a year.
The 2017 fire in Potter Valley
The Redwood Valley Fire started at 11:36 p.m. on October 8, 2017, and burned 36,523 acres, destroyed 543 structures and killed nine people before it was contained on February 9, 2018 (CAL FIRE). The deaths were in Redwood Valley, but by the county’s account the fire began in northeastern Potter Valley and merged with a second fire that started in Redwood Valley the next day (Mendocino Voice, 2023). The Mendocino Voice had earlier reported that tree branches struck a power line near Potter Valley, and an early update put about 1,500 of the first day’s burned acres in the valley. On a parcel that burned, ask what was rebuilt, under which permits, and whether fencing, outbuildings and wells were replaced.
Getting there and daily life
Highway 20 links Potter Valley to US-101 north of Ukiah, where the county offices and courts are. Public schools are run by Potter Valley Community Unified, one of Mendocino County’s 12 school districts (Mendocino County Office of Education). The Mendocino Transit Authority’s route list doesn’t include Potter Valley, so plan on driving; its bus routes from Ukiah run to Willits, the coast and Santa Rosa.
Potter Valley compared with nearby areas
| Area | Government | One verified difference |
|---|---|---|
| Potter Valley | Unincorporated | PVID irrigation from the Eel River diversion; Potter Valley AVA (1983) |
| Redwood Valley | Unincorporated | Domestic water from the Redwood Valley County Water District or wells; its own AVA (1996) |
| Ukiah | Incorporated city, county seat | City electric, water and sewer; a $0.55 per $1,000 city transfer tax |
| Willits | Incorporated city | Its own half-rate city transfer tax; on US-101 to the north |
How Diamond Real Estate Group helps Potter Valley buyers
Buying here is mostly about water and land use. We get the PVID service history and rate in writing, separate the irrigation supply from wells and springs, confirm the road status and septic permits with the county, and read the FERC record so you know where the dam removal stands on the day you sign. If the land is planted, we review the vineyard or orchard contracts and the appellation before you price it.
See also how we work with buyers, and our vineyard property guide if grapes are part of the plan.
Selling a home in Potter Valley
Potter Valley is unincorporated, so its permit, zoning, septic and well records are all Mendocino County files. For a ranch, orchard or vineyard parcel, the paperwork a buyer reads closest is about water and land-use restrictions, more than the house itself.
Transfer tax
No city tax applies. The county charges $0.55 per $500 of price, which is $1,100 on a $1 million ranch. Diamond’s North Bay sellers customarily pay it, but buyer and seller can split it differently. Our transfer tax guide has the details.
Irrigation and water records
Put the Potter Valley Irrigation District service history in writing: whether the parcel is served, the acre-feet used in recent years and the rate paid. Separate that from any well, spring or creek right, and supply the well completion report, which Environmental Health will provide on an owner’s request. PG&E has applied to decommission the Potter Valley Project, so expect buyers to ask about summer water after it, not only past deliveries.
Land-use restrictions that run with the land
- Williamson Act. State law makes a contract binding on all successors in interest. Disclose it, give the buyer the contract, and note any notice of nonrenewal. Our Williamson Act guide has more.
- Cannabis licenses. A county cultivation license doesn’t pass with the deed. The holder can assign it only with the department’s written approval, and the assignee must show a legal interest in the land; licenses on sunset-provision parcels can’t be assigned.
Septic, fire and the standard statements
The county’s septic chapter has no resale inspection, so the permit file and any inspection report are yours to supply. Non-standard systems must hold an operational permit. In a High or Very High fire hazard zone, AB 38 calls for a recent defensible-space inspection or a written buyer agreement to complete one within a year after closing. California also requires written smoke alarm and water heater statements and a disclosure of non-water-conserving fixtures.
A home valuation that adjusts for irrigation, acreage and plantings is the right first step; our Mendocino County seller page covers the wider county.
Sources for this section: Mendocino County Code (GoCodebook): Chapter 5.24, Real Property Transfer Tax; California Public Law: Government Code section 51243 (Williamson Act contracts); Mendocino County Code (GoCodebook): Chapter 10A.17, Mendocino Cannabis Cultivation Ordinance; Mendocino County Code (GoCodebook): Chapter 16.08, On-Site Sewage Systems; Mendocino County Environmental Health: Land Use (on-site sewage and water wells); CAL FIRE Office of the State Fire Marshal: Information Bulletin 21-007, defensible space inspections in real estate transactions (2021); Justia: California Civil Code section 1102.19; California Public Law: Health and Safety Code section 13113.8; California Public Law: Health and Safety Code section 19211; California Public Law: Civil Code section 1101.4.
Potter Valley real estate FAQs
What county is Potter Valley, CA in?
Mendocino County. It’s unincorporated, so county departments handle permits and only the county’s transfer tax applies.
Where is Potter Valley, California?
It’s an inland valley northeast of Ukiah, reached from US-101 by State Highway 20. The East Fork of the Russian River carries the diverted Eel River water from the valley’s powerhouse south to Lake Mendocino.
Are the Scott and Cape Horn dams being removed?
That is PG&E’s plan. It filed to surrender the project on July 25, 2025, and FERC finished taking scoping comments on September 18, 2026. FERC still has to complete its environmental review and decide on the application, and no removal dates have been set.
Will Potter Valley still get Eel River water?
The proposed New Eel-Russian Facility would keep diverting Eel River water, mainly during higher flows in fall, winter and spring, at about 35,000 acre-feet a year on average under the 2025 agreement. Summer deliveries are the open question, which is why storage inside the valley is being studied.
How do I find out if a parcel gets PVID irrigation water?
Ask the Potter Valley Irrigation District, in writing, with the parcel’s recent use. “Irrigated” in a listing doesn’t tell you the volume, the rotation or what changes after decommissioning.
What does PVID water cost?
After a June 18, 2025 board vote, the customer rate is $35 per acre-foot, up from $22.50, and the garden rate is $175 a year. Ask the district for the current rate schedule before you budget.
Is Potter Valley its own wine appellation?
Yes. The Potter Valley AVA dates from October 13, 1983 and is defined in 27 CFR §9.82; confirm a vineyard’s parcel against its boundary description.
Did the 2017 fire burn in Potter Valley?
Yes. The Redwood Valley Fire of October 2017 began near Potter Valley and burned in both valleys. On a parcel in the burn area, ask about rebuild permits and replaced outbuildings and wells.
Can I rent out a room or a house in Potter Valley?
Room rentals of up to two rooms are allowed as an accessory use, and short stays pay the county’s 10% lodging tax plus a 1% assessment. On February 3, 2026 the supervisors discussed creating an inland short-term rental use type and gave staff direction (Board agenda); we found no adopted ordinance as of October 2026, so confirm the current rules for a whole-house rental with Planning and Building Services.
Do Potter Valley homes have septic systems and wells?
Irrigation service from PVID isn’t household water. A rural home that isn’t on a public water system depends on its own well or spring, and on a septic system permitted by the county. Ask for the permits, a septic inspection and a well flow test.
Which school district serves Potter Valley?
Potter Valley Community Unified, a district of its own, separate from Ukiah Unified. Ask the district to confirm enrollment for a specific address.
Sources & notes
- FERC: Potter Valley Project, P-77 (updated July 30, 2026); PG&E: surrender filing (July 25, 2025); Russian River Flood Control District: the Potter Valley Project (2026)
- Potter Valley Irrigation District (notices to May 2026); Agri-Pulse (January 7, 2026)
- 27 CFR §9.82, Potter Valley AVA
- CAL FIRE: Redwood Valley Fire; Mendocino Voice (October 9, 2020)
- Redfin ZIP pages 95469, 95470 and 95482 (August–September 2026); C.A.R. (September 2026)
- Mendocino County Code chapters 5.24, 5.20 and 20.164 (GoCodebook copy); Board of Supervisors: inland short-term rental item (February 3, 2026) and county short-term rentals page (checked October 2026)
- State Fire Marshal: fire hazard maps and AB 38 guidance; county office of education; Mendocino Transit Authority
Figures carry their dates where they appear. This is general information, not legal, tax or insurance advice; confirm rules for a specific property with the agency named. Last reviewed October 2026 by Matthew Martinez.
Plan your next move
Share your preferred location, budget, property requirements and timing. We can help organize a focused search, arrange showings or discuss preparing a property for sale.
Local resource: Mendocino County planning resources. Check official information for the address you are considering; area descriptions do not establish a property’s permitted uses.
