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.
California's drought is blamed for a big downturn in honey production.
Researchers say California has been overdrawing its water account for a century.
Researchers at UC Davis fear that California’s drought may soon claim its first victim, the Red Hills Roach. The tiny fish is losing its water. Scientists fear it may soon be pushed to extinction.
A UC Davis report shows the drought has brought positive and negative effects to Lake Tahoe.
California's farm production costs totaled $36.6 billion in 2013, an 8.6 percent jump from the previous year. Higher rates for feed, labor, improvements and water contributed to the jump.