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.
The City of Sacramento wants to create a groundwater master plan that would include drilling more wells.
At least seven large holes have appeared on the Sacramento State campus in recent days. The construction is part of a new special runoff filtration system.
The California Department of Water Resources released a video this week and suggested that the state faces a scary future and potential fifth year of drought.
Citrus growers in California's Central Valley say they expect to fallow between 7 and 9 percent of the state's 270,000 acres of citrus trees because of the drought.
The "well above-average" rain of the past three months in California has not brought any improvement to drought conditions in the state.