The Colorado Water Users Board met Tuesday in Grand Junction, and one of the items on the agenda was a proposal to make a new lake in the Grand Valley.
One local group asked the board for $1.5 million to conduct a study, to see how feasible it would be to build a new lake in Eastern Orchard Mesa.
They say Grand Valley Lake would be ten times the size of Highline Lake.
It would be used as a resevoir to store water and would help power a hydro electric plant. Supporters say it could also be used by the public for recreational purposes.
Critics say the project would threaten a major fishery on the Gunnison River, where canals would carry water from to fill the lake.
"These people are promoting this as not having any environmental downsides," said Steve Glazer of the Gunnison Basin Round Table. "I think they're either deluding themselves or misrepresenting the situation."
Critics also say the group needs to find better ways to raise funds for the project before it should be allowed to move forward.