The South Bay's largest water agency on Tuesday will discuss a new plan to store more water in the event of another drought, but the concept could feature a steep price tag.
The plan calls to expand a reservoir near Pacheco Pass, making it the largest in Santa Clara County and the first new one built in the area in 60 years.
If approved, the revamped reservoir, which would cost as much as $800 million to put together, would hold 130,000-acre feet of water and would provide water to roughly 650,000 people.
The district said it would seek funding and likely make some of it back through higher water rates.
Questions have been raised about why a new reservoir is needed at a time when the Anderson Reservoir in Santa Clara County spilled over this past winter and triggered Coyote Creek to flood. Due to earthquake concerns, the Anderson Reservoir can not stay at full capacity.
The water district on Tuesday will take the first step toward applying for Prop 1 funding. Prop 1, which sets aside money for water quality supply and infrastructure, was passed in 2014.