The California Department of Water Resources has announced nearly $153 million in grants to regional water projects around the state.
The Department says 138 projects will share the money, and many of them will provide drought relief through expanded conservation and water recycling.
The money comes from a bond measure approved by voters in 2006. One of the projects includes a pipeline to provide recycled water to customers in the San Francisco Bay Area.
The U.S. Drought Center says the past week brought "widespread improvements" in drought conditions in northern California and Nevada.
California's energy grid manager says supply should be adequate for the summer, despite potential natural gas shortages in Southern California.
California water regulators will allow cities and water agencies to set their own conservation targets based on water supply.
Fire agencies are expected to continue prescribed burn operations this week in the Lake Tahoe Basin.
Severe and extreme drought were reduced slightly in California and 10 percent of the state is completely free of drought.