The U.S. Department of Interior is entering into an agreement with water managers in New Mexico that marks the next step in a long, contentious process as the state looks to develop its share of the Gila River.
The department's approval came Monday despite opposition from environmentalists and others who contend a diversion project along the Gila could end up costing $1 billion.
Critics submitted 54,000 petition signatures to the department last week.
Supporters argue that the project is vital to supplying communities and irrigation districts in southwestern New Mexico with a new source of water.
The department's signing of the agreement is procedural.
Federal officials say approval does not guarantee construction of a diversion system along the Gila, but rather triggers a series of environmental and economic feasibility reviews.
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