Water District Drops Plan to Build Largest New Bay Area Reservoir Since 1998 Amid Cost Overruns, Delays

Faced with new cost overruns, the board of Santa Clara County’s largest water agency on Tuesday voted to kill a plan to build a huge new reservoir in the southern part of the county near Pacheco Pass after eight years of studies and $100 million in public spending.

The board of the Santa Clara Valley Water District voted 6-0 to halt planning and engineering studies, and to withdraw the agency’s application for state bond funds for the Pacheco Reservoir project.