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.
Dangerous fire weather conditions has prompted one federal agency to impose fire restrictions on public lands in northern California.
Mandatory statewide water conservation rules have ended in California. But Sacramento-area users conserved 22 percent in June, compared to June 2013.
California and federal agencies say a new strategy is needed to save the endangered Delta smelt.
California is in the fifth consecutive year of drought, but state water managers ended mandatory conservation rules. Local water suppliers now determine conservation rates, and some have low or no targets. A water expert says that's 'shortsighted.'
California is in the fifth consecutive year of drought. Although mandatory statewide water conservation is over, the State Water Resources Control Board says water conservation remains a "top priority."