Two years ago, the cost of the dam project—required for earthquake protection and improved flood control for the Coyote Creek watershed—was estimated at $648 million.
After a tunnel is completed, crews will begin construction of a new dam embankment, which will continue until 2032. Anderson Reservoir will remain empty until the project is complete.
The lawsuit settled this month by Valley Water with more than 200 property owners along Coyote Creek stemmed from a February 2017 flood when the Anderson Dam in Morgan Hill overflowed, forcing the evacuation of thousands of residents in South San Jose.