Town’s investment in the regional water project could provide approximately 1,275 acre-feet of additional water annually, supporting long-term water supply needs.
JOHNSTOWN, Colo. — The Johnstown Town Council approved an $893,846 financial commitment to the Northern Integrated Supply Project (NISP) during its November 2 meeting, advancing the town’s participation in a major regional water development effort intended to expand water supplies across Northern Colorado.
The agreement provides for Johnstown’s participation through 1,400 project units, which town staff estimate would yield approximately 1,275 acre-feet of water annually once the project becomes operational. The project, managed by Northern Water, includes the proposed Glade Reservoir northwest of Fort Collins and additional infrastructure to store and deliver water to participating communities.
Town staff described the investment as an opportunity to diversify Johnstown’s existing water portfolio, strengthen long-term supply reliability and accommodate anticipated growth. The approved expenditure covers a defined period of project costs rather than the town’s total anticipated cost of participation.
What the $893,846 Commitment Covers
Under the Twenty-Second Interim Agreement, Johnstown’s $893,846 contribution covers its allocated share of project expenses from May 1 through December 31, 2026. The amount reflects the town’s requested participation relative to the total project capacity allocated among participating water providers.
The agreement requires Johnstown to make payment within 30 days of receiving an invoice and establishes that the town’s financial obligation cannot exceed the stated amount without prior written approval. The contribution is calculated using the same per-unit assessment applied to other participating entities.
An October 20 allocation table identifies Johnstown’s 1,400 units as approximately 6.7% of the 20,900 project units included in that allocation. The table lists approximately $13.34 million in combined contributions from participating entities for the applicable funding period.
The payment does not represent the full cost of acquiring and delivering Johnstown’s anticipated water allocation. Additional financial commitments could be necessary as the project moves through construction and future participation agreements. The current agreement does not automatically obligate Johnstown to participate in subsequent project phases.
The agreement was considered as a new business item during the November 2 Town Council meeting, along with a letter of intent outlining the town’s proposed participation.
What Johnstown Would Receive
Johnstown’s 1,400 project units are expected to provide approximately 1,275 acre-feet of water annually. An acre-foot represents approximately 326,000 gallons, meaning the town’s estimated allocation would equal roughly 415 million gallons per year.
That amount represents a projected annual water supply, not water immediately available to Johnstown residents or businesses. Actual deliveries would depend on the project’s completion, operating conditions and future water allotment agreements.
Town staff described the proposed allocation as an opportunity to diversify Johnstown’s water portfolio, strengthen long-term water supply reliability and support anticipated growth. Access to an additional water source would give the town another resource to consider when planning for future municipal demand.
However, participation does not automatically guarantee the projected amount will be delivered every year, nor does the agreement establish when water would first become available. Those details will depend on the project’s implementation and subsequent agreements.
Glade Reservoir and the Regional Water Project
The Northern Integrated Supply Project is designed to provide up to 40,000 acre-feet of water annually to participating Northern Front Range water providers. Northern Water is overseeing the project’s planning, permitting, design and construction on behalf of participating communities.
Glade Reservoir, the project’s largest proposed storage facility, would be constructed northwest of Fort Collins near U.S. Highway 287 and Colorado Highway 14. According to Northern Water’s project specifications, the reservoir would have a storage capacity of approximately 170,000 acre-feet, extend roughly five miles and reach a maximum depth of 280 feet.
The reservoir would store water diverted from the Cache la Poudre River, primarily during periods of higher spring runoff. Water would be transported through a combination of canals, pumping facilities and other infrastructure before being distributed through the regional delivery system.
Construction would also require relocating approximately seven miles of U.S. Highway 287 east of its existing alignment because portions of the current highway cross the proposed reservoir footprint. The broader project includes Galeton Reservoir northeast of Greeley, although that portion of the project has been deferred while Northern Water advances the Glade Reservoir facilities.
Northern Water currently anticipates beginning construction of Glade Reservoir components in 2027. However, the project must complete additional design, permitting and construction activities before participating communities can begin receiving water.
Project Costs and Long-Term Financial Considerations
Although Johnstown’s current commitment is $893,846, the larger Northern Integrated Supply Project carries a substantially greater price tag, and the total cost of the town’s eventual participation has not been established by the approved agreement.
Northern Water’s adopted fiscal year 2026 budget lists an estimated overall project cost of approximately $2.7 billion. During Johnstown’s November 2 council discussion, town staff cited an estimate of approximately $1.9 billion. The difference between those figures has not been reconciled, and neither amount represents Johnstown’s individual financial obligation.
Project costs have also been a consideration for other Northern Colorado water providers. The Fort Collins-Loveland Water District announced its withdrawal from NISP in April 2026, citing increased project costs, financial obligations and changes in its assessment of the project’s long-term value.
For Johnstown, future participation agreements will be important in determining the town’s total investment, its financial responsibilities during construction and the terms under which water would eventually be delivered.
The Twenty-Second Interim Agreement allows Johnstown to reduce or withdraw from future participation with at least 180 days’ written notice to the project enterprise and other participants. Under the agreement, Johnstown generally would not be entitled to recover previously contributed funds if it withdraws, unless replacement funding becomes available through another participating entity.
The town would also remain responsible for its agreed expenses under the current participation period, even if it elected not to enter a subsequent agreement. Those provisions mean future decisions about continued participation could have financial consequences beyond the initial payment.
What Happens Next
Johnstown’s November 2 approval is part of a broader process involving the Northern Integrated Supply Project Water Activity Enterprise and Northern Water.
The participation timeline presented to the council identifies a planning session scheduled for November 5, followed by anticipated consideration by the Northern Water Board on November 12. Under the agreement, the enterprise’s obligations become binding only after approval by its board.
Beyond those steps, major construction and water delivery infrastructure must be completed before Johnstown can begin receiving its anticipated allocation. The timing of those deliveries and the town’s eventual total investment remain undetermined.
The decision comes as Johnstown continues pursuing additional water resources through multiple approaches. At the same November 2 meeting, the Town Council approved a separate $900,000 purchase of 15 Colorado-Big Thompson Project units, adding another component to the town’s water acquisition efforts.
For residents, the NISP agreement represents an investment in future water availability rather than an immediate change in municipal water service. Johnstown has committed nearly $900,000 toward participation in a regional project that could eventually provide a substantial additional water supply, while future agreements and construction progress will determine the ultimate cost and timing of that investment.
