The governor’s office said the State Water Resources Control Board approved the final water right permit for the Sites Reservoir project. The decision clears the way for construction of what the governor’s office said would be California’s largest new reservoir in more than 50 years.

The governor’s office said the 1.5 million-acre-foot off-stream reservoir would store enough water to supply more than 4.5 million homes for one year. The project is intended to modernize water infrastructure and strengthen reliability by capturing Sacramento River water during high-flow periods and saving it for dry years. State projections indicate California could lose 10% of its water supply by 2040 due to hotter and drier conditions, the release said.

The permit establishes conditions for diverting and storing water from the Sacramento River, the governor’s office said. Located in Glenn and Colusa counties, the off-river design means the reservoir would not block fish migration or spawning, according to the release. California Secretary for Natural Resources Wade Crowfoot said, “Our water system was built for a climate that no longer exists.”

The governor’s office said Sites Reservoir would provide several public benefits once complete. Those include flood management by capturing high flows during large storms and wet winters, deliveries to wildlife refuges such as the Sacramento National Wildlife Refuge Complex, and up to 200,000 acre-feet of water for use during emergency-declared droughts. The project is also expected to create new recreational opportunities for an estimated 187,000 visitors annually, according to the release.

Backers quoted in the release said the approval is a major milestone after decades of planning. The Sites Project Authority said it is ready to move the project toward construction. Governor Gavin Newsom said the approval shows the state can advance large infrastructure projects and added, “Now it’s time to get shovels in the ground.”

Under the governor’s leadership, the state has provided major investments and streamlined reviews to advance the project, the release said. In June, the governor announced nearly $269 million in additional funding, bringing total eligible state funding for Sites Reservoir to approximately $1.36 billion, according to the release.

With the water right approval, the project has cleared all regulatory approvals needed to start construction, the governor’s office said. The release said the Sites Project Authority and participating water agencies will now focus on advancing financing needed to begin construction.