Montana Begins St. Mary Diversion Dam Rehabilitation
The $70 million project aims to modernize century-old water infrastructure for the Milk River Basin.
Updated on Oct. 27, 2026 in Utilities

Live Poll
Do you support using federal infrastructure funds to rehabilitate aging local water systems in your area?
The Milk River Project is undergoing a $70 million rehabilitation of the St. Mary Diversion Dam near Babb, Montana. This effort replaces aging components to secure water delivery for the region.
Why it matters
The dam supplies nearly all of the water to the Milk River Basin during dry years, making its structural integrity critical for local agriculture and community stability. These repairs are designed to ensure the system remains functional for another century.
The $70 million rehabilitation project is funded in part by the Bipartisan Infrastructure Law to secure water access. The system provides 90% to 100% of the Milk River Basin's water supply to farms and towns during drought conditions.
The players
Milk River Project
This entity manages the vital water infrastructure serving farms and communities across the Milk River Basin.
The details
The project addresses structural deficiencies accumulated since the dam's completion in 1915 while adding a new fish passage to protect the threatened bull trout. These improvements are intended to modernize the infrastructure and boost long-term delivery efficiency.
Timeline
1915: The St. Mary Diversion Dam was originally completed.
October 27, 2026: The Milk River Project shared current construction status updates.
Market Landscape
This rehabilitation effort follows a pattern set by the Bipartisan Infrastructure Law in allocating federal funds for aging water infrastructure modernization. It positions the region to maintain agricultural production by addressing legacy infrastructure limitations through sustained capital investment.
Local farmers and residents in the Milk River Basin can expect improved water delivery reliability following the structural upgrades. The project ensures long-term access to essential water supplies that support the region's agricultural economy.
The takeaway
Maintaining century-old water infrastructure is essential for regional drought resilience and sustainable agricultural operations. Residents should monitor local project updates to understand potential seasonal water management changes during the construction phases.
Further reading
For more background on regional infrastructure projects, visit Montana Utilities.
Source note: This article includes information reported by Montana Outdoor.
Live Poll
Do you support using federal infrastructure funds to rehabilitate aging local water systems in your area?










