Lake Burragorang is a man-made reservoir in the lower Blue Mountains of New South Wales, Australia, serving as a major water supply for greater metropolitan Sydney.
There are fears, however, that population pressures may stretch the reservoir's ability to furnish Sydney residents with needed water well into the 21st century.
Critics have alleged it may be to allow rezoning of prime agricultural in the flood zone, to residential property for commercial developers.
It would also flood large areas of native vegetation, that provides a substantial carbon dioxide sink, without proposal for replacement.
The announcement was made while an application for concessions to extend mining operations inside the drinking water catchment areas, is under consideration.
A hydroelectric power station at Warragamba Dam begins operating once the level in the reservoir reaches to within 1 metre (3 ft 3 in) of full capacity.