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 lawmakers heard testimony about the dire state of the fishing industry on the West Coast.
There was a slight reduction in the percentage of drought in California over the past week. But the U.S. Drought Monitor says it will take time to ease the state's historic four-year drought.
A new study says California's four-year drought has reduced hydroelectricity generation, resulting in higher electricity costs to ratepayers and increased greenhouse gas pollution.
Legislation introduced in the California state Assembly would create the Lower American River Conservancy to improve, protect, preserve and possibly expand the 5,000-acre American River Parkway.
January brought above-average rainfall and snow to much of California, partly due to El Niño. But forecasters say the ocean warming condition is "taking a break" for the next week or longer.