Wallace Community Service District (WCSD) was formed November 8, 1990 to provide the following services to its residents: water, sewer, road maintenance, waste collection and disposal, street lighting, and maintenance of a recreational building and common area. The CSD covers 381.30 acres, of which 322 acres include Wallace Lake Estates. Wallace Lake Estates is currently under development, with 389 single family parcels, 5.3 acres of multifamily residential parcels, and some nonresidential parcels. The nearby community of Wallace has several commercial uses and 20 residents. When the Estates subdivision is fully developed, the population within Wallace CSD may potentially reach about 900 residents. Calaveras County reportedly conditioned the project on formation of the Wallace CSD to provide the above services. G.M. Winchell and Sons, developer of the project, provides some other services, including security, as well as maintenance of the water, sewer, and gas distribution systems. ​

As a public agency, WCSD is governed by a board of directors comprised of residents who live within the District.  Their primary responsibilities include maintenance of common areas that include streets, lighting, walking trail common areas, and easements.​

In 2009, WCSD divested from Calaveras County Water District and turned over the responsibility to maintain water services to the county.