In the first half of the 20th century, the local water company, East Bay Municipal Utilities District, purchased much land south of town. They constructed the Upper San Leandro Reservoir, which slowly as it filled up, flooded the former towns of Valle Vista and Redwood. The reservoir also flooded several neighborhoods of Canyon itself. In fact, the only reason Canyon is not the size of neighboring Moraga is because a lack of a viable water resource. The few people that do live there are mostly commuters and retired people who like the town's seclusion, with close proximity to San Francisco, Oakland, and San Jose.