The South San Joaquin Irrigation District has decided not to raise the reservoir outside of Modesto to summer levels, because of concern over water that would be lost to evaporation.
District Board Member Dave Kamper says the Stanislaus County Parks and Recreation Department could be hit particularly hard.
"Every drop of water is incredibly valuable this year, if we can save water, it's as much as 10,000 acre feet of water that can be saved," Kamper says.
The department has concessions at the reservoir and could lose two million dollars, if recreational activities are curtailed.
"They schedule the 4th of July event way ahead of time of course and some other events out there and it will be impossible for them to book them if they don't have the assurance there will be half way decent lake for poeple to play in and so they're in trouble no matter what," says Kamper.
The District also provides irrigation water for about 3,000 farmers, and drinking water for Tracy, Manteca, and Lathrop.
UPDATE June 26: Fire managers says the Erskine Fire near Lake Isabella in Kern County has grown to 43,460 acres and is 40 percent contained. Two people have died, and more than 250 structures have been destroyed and an additional 75 damaged.
Four consecutive years of drought, millions of dead trees and summer heat, are all factors as thousands of firefighters work to control wildfires in California.
Not much change is expected in drought conditions in California during the summer "dry season" but wildfire danger is increasing, with 66 million dead trees in the Sierra Nevada adding potential fuel.
The U.S. Forest Service says 66 million trees are dead in the Sierra Nevada after four consecutive years of drought in California and a bark beetle infestation.
California is in the fifth consecutive year of drought and water providers continue to urge voluntary conservation, as mandatory statewide rules have ended. Sacramento-area residents reduced their water use by 31 percent in May.