[1][7] The canal intake and temporary wooden headgates (known as the Chaffey Gate) were initially located in the United States at Pilot Knob due to the availability of a solid rock foundation.

Imperial Valley farmers, under considerable financial stress, pressured the California Development Company to resolve the problem.

Charles Rockwood, faced with bankruptcy and "after mature deliberation", directed the engineering of a breach in the bank of the Colorado River approximately 4 miles (6.4 km) south of the existing wooden headgates (the Chaffey Gate).

[3][10][11] During the subsequent seasonal floods of 1904 through to late 1906, a large amount of the water carried in the Colorado River flowed directly into the Salton Sink.

[12] The rate of water loss through aquifer replenishment and evaporation in the Salton Sink was much less than the massive inflow of the Colorado River via the third diversion of the Alamo Canal (the "Lower Mexican Intake").

As a direct result of the decision to create canal intakes from the Colorado River without headgates the Salton Sea was formed.

By 1916 the Imperial Irrigation District had purchased all the ex-California Development assets from Southern Pacific and assumed operation of the canal.