Legal Question in Real Estate Law in California

That would depend on the specific language of the easement. Utility easements are worded many different ways, some more specific than others. It may be specific enough to make the meter an encroachment, or perhaps a surcharge, or it may not.

If the city has placed a meter in the easement, it's very likely there are pipes there also, probably underground, probably for a long time. If the pipes are present and have been there a while, I'd be inclined to think the city either has an easement by virtue of a grant or reservation that is reflected in the public records, or has acquired an easement by prescription.

In most recent subdivisions, the developers will have taken care to assure that all lots can be served by all utilities, and the easements will be designed to be as compact and unobtrusive as possible without cramping the utilities' operational needs. Therefore, there won't usually be separate easements for each utility except where necessary. This would limit the buildable area of the lots too greatly. Each easement will, therefore, be described in a grant or reservation as being for "utilities" or "public utilities" without specifying particular services or particular companies. (Exceptions will be found).

Utility easements can be divided into two kinds: those for distribution and those for access to a single patron. Distribution easements serve more than one customer and generally need to be granted, reserved, or otherwise obtained (occasionally, by prescription). Single-patron access esaements are usually part of the service agreement with the patron: The homeowner agrees to provide access, and the utility agrees to deliver service.

Services that are recognized by law as public utilities will also often have a power of eminent domain, and could condemn an easement if backed into a corner. This would be true of a private water company as well as a city-run utility.