The 2003 agreement with the Corps would give Georgia about a quarter of Lake Lanier's capacity and is the foundation of the state's long-term plans for supplying drinking water to the rapidly growing Atlanta region.
Alabama and Florida argued that Georgia doesn't have any legal right to the federal reservoir, which was initially built for hydropower. The withdrawals would dry up river flows into their states that support smaller municipalities, power plants, commercial fisheries and industrial users like paper mills.
A district court earlier ruled in Georgia's favor. But the U.S. Court of Appeals in Washington overturned that decision. It said the agreement constituted a major operational change at the reservoir that requires congressional approval.
Governor Bob Riley of Alabama said it is ``the most consequential legal ruling in the 18-year history of the water war.''
Riley said it establishes that Atlanta cannot continue to take more and more water from the federal reservoirs in the Coosa and Chattahoochee River basins.
http://accesswdun.com/article/2008/2/206567