The California Water Commission approved nearly $219 million in new funding for the Sites Reservoir project. The allocation increases the project’s eligibility for Proposition 1 funds to $1.094 billion and helps cover cost escalations from inflation and earlier delays.

Sites Reservoir, planned near Maxwell in Colusa County, will store 1.5 million acre-feet of water. That volume could supply more than 4.5 million households each year. During wet years, crews will divert water from the Sacramento River and store it for use in dry periods, boosting drought resilience statewide.

The reservoir’s total cost is estimated at $6.8 billion, with $780 million expected from federal financing. More than 30 local and regional water agencies are partners in the project. Once complete, Sites will be the second-largest off-stream reservoir in the United States, after San Luis Reservoir.

The project will also release water for fish and habitat protection, reduce flood risks, and create new recreation opportunities.