Deal to expand reservoir should boost California's water supply

SAN LUIS RESERVOIR, Calif. - An agreement to expand a reservoir just south of the Bay Area is expected to provide a big boost to California's water supply.

The nearly $1 billion deal involves the San Luis Reservoir, between Gilroy and Los Banos, according to the Mercury News. 

The San Luis Reservoir is an artificial lake on San Luis Creek in the eastern slopes of the Diablo Range of Merced County. 

It is the fifth largest reservoir in California. 

Eight state water agencies have reached an agreement with the federal government to raise the height of its dam by more than 10 feet.

That's expected to expand the reservoir enough to provide water for 650,000 people for an entire year.

The Mercury News reported that the Santa Clara Valley Water District, a San Jose agency that provides water to 2 million residents in Santa Clara County, would contribute $435 million of the $942 million cost of the project. 

In turn, Santa Clara County residents would receive the largest share of the new water. 

Other agencies that would receive some of the water are the Westlands Water District in Fresno, the Byron Bethany Water District in Contra Costa County, the city of Tracy, the San Benito County Water District and the Del Puerto, San Luis and Pacheco water districts.