California expands water storage infrastructure, largest new reservoir in more than 50 years clears final permit

What you need to know: Under Governor Newsom's leadership, California just reached a major milestone. After decades of planning, Sites Reservoir secured its final water-right permit, driven by Governor Newsom and other state leaders who made the project a priority. The approval clears the way for construction and moves California closer to adding 1.5 million acre-feet of new water storage to prepare for a hotter, drier future.

SACRAMENTO - Governor Gavin Newsom's push to expand California's water infrastructure through the Sites Reservoir reached a major milestone as the State Water Resources Control Board approved the project's final water right permit. The decision puts California on track to build its largest new reservoir in more than 50 years - helping modernize California's water infrastructure and strengthen water reliability for generations to come.

The decision marks a major achievement in the Governor's work with other state leaders to deliver critical infrastructure after decades without construction of a comparable water storage project. By establishing appropriate conditions for diverting and storing water from the Sacramento River, the permit moves California closer to building a reservoir designed to capture water during wet periods and save it for dry years.

We made Sites Reservoir a priority because California can't afford to keep waiting for the water storage we need. From 2020 to 2022, California went through its driest three-year period on record, followed by nine atmospheric rivers in just three weeks. That's the reality we're up against. The approval shows California can get big infrastructure projects moving again. Sites Reservoir is a smart investment in our future, helping ensure our communities, farms, and wildlife have the water they need when it matters most. Now it's time to get shovels in the ground.

Governor Gavin Newsom

Located in Glenn and Colusa counties, Sites Reservoir is designed to capture water from the Sacramento River during eligible high-flow periods and store it for use during prolonged dry conditions.

"Our water system was built for a climate that no longer exists," said California Secretary for Natural Resources Wade Crowfoot. "To adapt, we need to capture water during huge storms and wet winters to get us through worsening droughts - and that's exactly what Sites Reservoir will do. All regulatory approvals have now been provided and California is on the verge of breaking ground on this critical investment for our communities, economy, and environment. This is how we secure our water future in a shifting climate."

Because it sits off the river, the reservoir will not block fish migration or spawning. The project would add 1.5 million acre-feet of water storage capacity, enough to supply more than 4.5 million homes for one year.

Once complete, Sites Reservoir will:

• Capture and store high flows from the Sacramento River during large storms and wet winters, providing flood management benefits.
• Deliver water to wildlife refuges, including the Sacramento National Wildlife Refuge Complex, Upper Butte Basin Wildlife Area, and San Luis National Wildlife Refuge.
• Provide up to 200,000 acre-feet of water for use during emergency-declared droughts.
• Create new recreational opportunities for an estimated 187,000 visitors annually.

Preparing California for a changing climate

California's water supplies are facing unprecedented pressure as rising temperatures reduce mountain snowpack and intensify swings between drought and flooding.

State projections indicate California could lose 10% of its water supply by 2040 due to hotter and drier conditions, while the reliability of the State Water Project could decline by as much as 23%. These challenges are outlined in the State Water Project Adaptation Strategy, which identifies actions to protect California's future water supplies.

Supporters of Sites Reservoir across the state are saying:

"This is a big moment for boosting our water supply," said Congressman Mike Thompson (CA-04). "I was proud to be an early champion for Sites Reservoir - appropriating the first funding for it as a State Senator - and as Congressman, securing even more funding through the Bipartisan Infrastructure Law. With the permitting process now complete, I'm looking forward to seeing construction begin as soon as possible to make this reservoir a reality."

"The approval is a major milestone for Sites Reservoir and brings us one step closer to delivering the water infrastructure California needs," said Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters). "This project will create jobs, help protect the environment, and support our farms and communities. Our work with tribes and other regional stakeholders will be essential to our ultimate success. With a strong El Niño underway, we are reminded that we must capture water when it is abundant and store it for the dry years ahead. I applaud this important progress toward making Sites Reservoir a reality."

"This is an important day for Sites Reservoir and for California," said Fritz Durst, Chair of the Sites Project Authority Board of Directors. "Sites has been decades in the making, and we are closer than ever to making it a reality. With this decision, we're ready to move forward and turn years of planning into action."

"Our focus has always been on developing a Sites Reservoir Project that is affordable, permittable, and buildable," said Jerry Brown, Executive Director of the Sites Project Authority. "Reaching this point has taken sustained collaboration with our partners across California. The water right decision puts us in a strong position to move the Project toward construction."

"Sites Reservoir turns California's water challenges into opportunity - capturing water in wet times to sustain our communities, farms, fish and wildlife through dry years," said David Guy, President of the Northern California Water Association. "By pairing modern infrastructure with dedicated environmental water, Sites Reservoir is an investment in a vibrant future for healthy rivers and landscapes in Northern California and a more resilient California. The State Water Board action shows a clear path forward for the Sites Project Authority to turn decades of planning into a lasting investment for California's rivers, landscapes, and communities."

"Sites Reservoir offers California an opportunity to turn state water policy into tangible and lasting public benefits," said Jeff McCreary, Director of Operations for Ducks Unlimited's western region. "Completing Sites would translate voter support and legislative direction into infrastructure that strengthens California's resilience and serves communities, farms, and the environment."

"Water remains a challenge for wetlands south of the Delta, and this is a dedicated public ecosystem benefit of the Sites project," said Ric Ortega, General Manager, Grassland Water District. "The Sites water-right permit is an essential step to delivering the environmental water our wetlands need."

"Millions of Bay Area residents can take comfort that the action by the State Water Resources Control Board will help ensure the reliability of our water supply for decades to come while also strengthening our resilience to unpredictable weather changes," said Libby Schaaf, President and CEO of the Bay Area Council. "Thanks to the leadership of voters, the State Water Board, and Governor Newsom for fast-tracking the project, California is now prepared to break ground next year on the largest reservoir built in the state in generations. The Bay Area Council is proud of our role from the beginning in advocating for this important infrastructure investment."

"Sites represents the kind of strategic investment California needs - capturing available water during high-flow periods and providing greater flexibility to meet future water supply and environmental needs," said Charles Wilson, Executive Director and CEO, Southern California Water Coalition. "We appreciate the Board's extensive work to balance water reliability with environmental protection."

"Water reliability is economic reliability. Sites Reservoir is a critical investment in California's future, helping protect the businesses, jobs, and communities that depend on a dependable water supply," said Stuart Waldman, President, LA BizFed. "For Southern California businesses, the cost of continued delays is real-greater uncertainty, higher costs, and lost opportunities for economic growth. We need to move forward with smart infrastructure investments like Sites Reservoir that strengthen our economy and protect our future."

"The approval of the Sites Reservoir water rights permit is a major step forward for California's economy, workforce, and water future," said Joshua Arce, Executive Director, California Alliance for Jobs. "Projects like Sites Reservoir don't just create good-paying construction jobs-they build the infrastructure that supports businesses, agriculture, and communities for generations. California cannot afford to let critical infrastructure remain stuck in endless delays while our water challenges continue to grow. This decision demonstrates that we can protect our environment, invest in our future, and move essential projects forward. Now it's time to get Sites Reservoir built."

Building California's water future

Under Governor Newsom's leadership, California has advanced Sites Reservoir through major state investments, streamlined environmental review, and coordination with project partners. In June, the Governor announced nearly $269 million in additional funding, bringing the project's total eligible state funding to approximately $1.36 billion.

With the water right approval, the project has cleared all regulatory approvals needed to initiate construction. Now, Sites Project Authority and participating water agencies turn to advancing financing needed to begin construction.

A record of action on water

Since taking office in 2019, Governor Newsom has advanced an ambitious approach to water management ─ expanding storage, investing in aging infrastructure, and preparing communities for increasingly extreme droughts and floods.

Major milestones include:

• 2019 - Expanding access to safe drinking water: Established the Safe and Affordable Drinking Water Fund, supporting efforts that have helped approximately 1 million Californians gain access to safe drinking water.

• 2020 - Creating a roadmap for water resilience: Released California's Water Resilience Portfolio, outlining 142 actions to strengthen water supplies, protect ecosystems, and prepare for climate extremes.

• 2022 - Preparing for a hotter, drier California: Launched California's Water Supply Strategy to expand water storage, recycling, and conservation while adapting to declining snowpack.

• 2023 - Capturing more stormwater: Accelerated groundwater recharge during historic storms through executive orders and streamlined permitting, helping California achieve 4.1 million acre-feet of managed groundwater recharge. Invested nearly $1 billion over a decade to support the Sustainable Groundwater Management Act, helping communities advance groundwater sustainability efforts as nearly 3,000 groundwater-related projects were initiated statewide to protect water supplies for future generations.

• 2023 - Building water infrastructure faster: Signed SB 149, a landmark infrastructure streamlining law, and used it to fast-track Sites Reservoir. The project went on to quickly defeat a CEQA challenge in court.

• 2024 - Bringing salmon back: Completed the largest river restoration projects in American history by removing four dams along the Klamath River in partnership with tribes, reopening 400 miles of spawning habitat. Launched California's Salmon Strategy for a Hotter, Drier Future, with nearly 70% of its 71 actions now underway and another 26% complete.

• 2026 - Advancing California's next generation of water infrastructure: Launched development of California Water Plan 2028, establishing a statewide planning target of 9 million acre-feet by 2040, and secured approximately $1.36 billion in eligible funding to advance Sites Reservoir.

• 2026: Restoring rivers and the Delta: Championed the Healthy Rivers and Landscapes Program, which the State Water Board adopted in October as part of the first major update to the Bay-Delta Plan's Sacramento/Delta protections since 1995. The program pairs increased river flows with the restoration of more than 27,000 acres of aquatic habitat.