Streams and creeks that flow from the highest peaks of the Never Summer Mountains are diverted into the ditch, which flows over the Continental Divide at La Poudre Pass at 10,175 feet (3,101 m), delivering the water into Long Draw Reservoir[2] and the Cache La Poudre River for eastern plains farmers.

It significantly impacts the ecology in the valley below and the National Park Service has fought in court to reduce the amount of diverted water.

[6] In May 2003 a 100 ft (30 m) section of the ditch breached about 2.4 miles (3.9 km) south of La Poudre Pass, causing the water to cascade down the slopes and into the Colorado River.

The flood left a visible scar on the mountainside: 20,000 trees were downed and 47,600 cubic yards of debris ended up in the Lulu Creek and the headwaters of the Colorado River.

The Water Supply and Storage Company reached a settlement to pay $9 million in damages to Rocky Mountain National Park.