His plan will face resistance from some Democrats hesitant to impose new taxes.
Up to 1 million Californians are estimated to have some type of contaminated or unclean water coming through their taps that can cause health issues.
Newsom has called it a "moral disgrace and a medical emergency."
He wants to impose new fees on water customers and animal and dairy farms to pay for public water improvements.
It's nearly identical to a measure that failed last session.
A competing proposal by Democratic Sen. Anna Caballero would use money from the state's multibillion-dollar surplus to create a trust fund to pay for water improvements.