New Mexico's most powerful water planning commission has voted to take advantage of federal funding to build a diversion and storage system along the Gila River.
The Interstate Stream Commission also decided during a meeting Monday in Albuquerque that some of the money will go toward other projects aimed at stretching the drought-stricken region's water supplies.
The commission's vote comes after more than 200 meetings, volumes of public comment and a lawsuit that challenged the transparency of the planning process.
Under a 2004 settlement with Arizona, New Mexico is entitled to an average of about 4.5 billion gallons a year.
Supporters say New Mexico has a rare chance to develop a new source of water, but critics say the price tag of diversion could reach $1 billion.
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