Fort Collins Will Abandon Halligan Reservoir Expansion

The city will seek to join the Glade Reservoir project to stabilize water rates and avoid permitting hurdles.

Updated on Oct. 14, 2026 in Utilities

Fort Collins Will Abandon Halligan Reservoir Expansion

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Fort Collins city officials plan to abandon the Halligan Reservoir expansion project following a reassessment of permitting and construction costs. On October 20, the City Council will consider a resolution to withdraw the current permit application and pivot toward the regional Glade Reservoir project.

Why it matters

The city concluded that the U.S. Army Corps of Engineers would not approve the Halligan dam project, while rising costs made the expansion financially unsustainable. Joining the Glade Reservoir project is projected to result in smaller future water rate increases for local customers.

Fort Collins has invested $50 million into the planning stages of the 96-foot-high Halligan dam, which was designed to store 14,600 acre-feet of water. Meanwhile, Northern Water has utilized engineering studies to identify $100 million in potential cost savings for the Glade Reservoir.

The players

Fort Collins City Council

This local governing body is responsible for municipal policy, budgeting, and final approval of water storage project resolutions.

U.S. Army Corps of Engineers

This federal agency is the primary regulatory authority responsible for issuing environmental and construction permits for major water infrastructure projects.

Northern Water

This water conservancy district oversees the Northern Integrated Supply Project and manages water resources for a multi-county region in Colorado.

The details

City staff will present a resolution to withdraw the Halligan application and re-appropriate existing project funds. This shift follows an investigation into the Glade project initiated in June 2026, as the city seeks a more viable path for long-term water storage.

2025: NISP project costs began to soar.
June 2026: Fort Collins investigated buying into the Glade project.
October 15, 2026: Preview materials for city meetings were released.
October 20, 2026: The Fort Collins City Council considers the water storage resolution.

Market Landscape

This move represents a broader industry shift as local utilities increasingly consolidate efforts into large-scale regional projects to combat rising construction costs. By pivoting to the Glade Reservoir, the city aligns itself with established regional supply networks rather than pursuing independent, high-risk expansions.

Residents can expect the transition to the Glade Reservoir project to result in smaller future water rate increases compared to the projected costs of the Halligan expansion. This move aims to protect local household budgets by leveraging more efficient regional engineering strategies.

The takeaway

This decision highlights how cities are increasingly prioritizing regional cooperation to navigate the ballooning costs of essential infrastructure. Residents should track city council updates for details on how this change in project participation will affect long-term municipal water budgets.