WASHINGTON — The Department of the Interior gave final approval to the Sites Reservoir Project in late January 2026. The approval follows an order from the Trump administration to increase water supplies for Northern California.

The reservoir will be built in a valley near Maxwell, west of the Sacramento River. Unlike a traditional dam that sits directly on a river, this will be an "off-stream" facility. This design allows the system to pump water from the river during rainy periods and store it for later use.

The reservoir is designed to hold 1.5 million acre-feet of water. One acre-foot is roughly enough water to supply two households for a year. Project plans aim to use this stored water to make the supply more dependable for California towns, farms, and the environment during droughts.

Officials expect construction to begin in early 2027, with total costs estimated at $6.2 billion to $6.8 billion. The Bureau of Reclamation, a federal agency that manages water projects, will cover up to 25% of that amount.

Interior Secretary Doug Burgum said the approval shows how building new water storage can make the supply more reliable for families, farmers, and the economy. Assistant Secretary Andrea Travnicek added that the decision follows years of scientific studies and work with tribal and local groups.

The announcement comes as other government actions have increased the amount of water sent to the region. According to officials, the Central Valley Project — a federal network of dams and canals — recently received an additional 200,000 acre-feet of water due to an executive order. This amount provides enough water to serve approximately 400,000 households for a year.