Reclamation > News & Multimedia > news release > Reclamation awards $81 million contract for Navajo Gallup Water Supply Project’s Block 2-3 pipeline marking the last large-scale award towards completion of the project
Reclamation awards $81 million contract for Navajo Gallup Water Supply Project’s Block 2-3 pipeline marking the last large-scale award towards completion of the project

Media Contact: Upper Colorado Basin Public Affairs, 385-261-1929, ucbpao@usbr.gov
For Release: Sep 8, 2026
Example of open pipe trench install being utilized on the Navajo-Gallup Water Supply Project Example of open pipe trench install being utilized on the Navajo-Gallup Water Supply Project

FARMINGTON, N.M. ─ The Bureau of Reclamation announced an $81 million contract award to Carstensen Contracting, Inc. for the construction of the Block 2-3 pipeline for the Navajo-Gallup Water Supply Project in northwest New Mexico. This award now moves Reclamation one step closer to completing its largest project to deliver clean, reliable water to nearly 250,000 people on the Navajo Nation, proudly fulfilling this historic water rights settlement. 

The Bureau of Reclamation is advancing construction of the Block 2-3 Pipeline, a critical component of the Navajo-Gallup Water Supply Project. This segment begins at the Frank Chee Willetto Reservoir east of Shiprock and extends south to the San Juan Lateral Water Treatment Plant.

Awarding this contract is a defining moment for the Navajo-Gallup Water Supply Project,” said Reclamation’s Western Colorado Area Office Manager Bart Deming. “With the Block 2-3 pipeline construction underway, we are taking the final steps toward delivering reliable water to Navajo communities and regional partners. This achievement reflects years of dedication and collaboration and brings us closer to fulfilling our commitment to provide sustainable water for generations to come.”

The Block 2-3 Pipeline will convey raw water through buried transmission pipelines. After it is treated to drinking water standards, it will be further conveyed along the San Juan Lateral delivering long-term, reliable water supply to Navajo communities and regional partners. 

With this award, all major components of the San Juan Lateral are either completed or under construction for future water conveyance along the mainline transmission system. The San Juan Lateral is more than 75% complete with initial water deliveries slated for late 2028 and final project completion by the end of 2029.

Major project work elements include:

  • Installation of 42-inch and 48-inch buried water transmission pipe, forming the backbone of the Block 2-3 conveyance system.
  • Construction and equipping the pipeline system with regulating tanks, crossings, structural supports, valves, erosion control, and cathodic protection to ensure safe, reliable operation and environmental stability.
  • Integration of Supervisory Control and Data Acquisition (SCADA) systems and fiber‑optic cabling, enabling remote monitoring and automated control of pipeline operations.

This contract, which will be Carstensen Contracting’s first on the project, is funded through the Reclamation Water Settlement Fund authorized in Public Law 111-11. 

The Navajo-Gallup Water Supply Project is the cornerstone of the Navajo Nation Water Rights Settlement in the San Juan River Basin in New Mexico and was authorized for construction by the Omnibus Public Land Management Act of 2009, known as Public Law 111-11. Construction began in 2012, and the completed project will include approximately 300 miles of pipeline, two water treatment plants, 19 pumping plants and multiple water storage tanks. The project helps address the needs of the Navajo Nation, where more than one in three people do not have indoor plumbing and must haul drinking water to their homes.

For more information, visit the NGWSP website.

# # #

The Bureau of Reclamation is a federal agency under the U.S. Department of the Interior and is the nation's largest wholesale water supplier and second largest producer of hydroelectric power. Our facilities also provide substantial flood control, recreation opportunities, and environmental benefits.

 

Return to top