- Reclamation awarded an $81 million contract for a major pipeline in northwest New Mexico.
- The Block 2-3 pipeline will carry untreated water toward the San Juan Lateral Water Treatment Plant.
- All major parts of the San Juan Lateral are now either completed or under construction.
- Initial water deliveries are scheduled for late 2028.
- The full Navajo-Gallup Water Supply Project is expected to be completed by the end of 2029.
Wednesday, September 9, 2026 — The Navajo-Gallup Water Supply Project has reached another major construction milestone.
On September 8, the Bureau of Reclamation
announced an $81 million contract for construction of the Block 2-3 pipeline in northwest New Mexico. Reclamation awarded the contract to Carstensen Contracting, Inc.
Reclamation described it as the last large-scale contract award needed as the agency works toward completing the massive water project.
When finished, the Navajo-Gallup system is expected to provide clean, reliable water to nearly 250,000 people.
A Major Piece of the San Juan Lateral.
The new Block 2-3 pipeline will begin at the Frank Chee Willetto Reservoir east of Shiprock and extend south to the San Juan Lateral Water Treatment Plant.
The pipeline will carry untreated, or raw, water through buried transmission lines. After the water reaches the treatment plant and is treated to drinking water standards, it will continue through the San Juan Lateral to Navajo communities and other regional partners.
“Awarding this contract is a defining moment for the Navajo-Gallup Water Supply Project,” Reclamation Western Colorado Area Office Manager Bart Deming said.
“With the Block 2-3 pipeline construction underway, we are taking the final steps toward delivering reliable water to Navajo communities and regional partners,” Deming said.
According to Reclamation, all major components of the San Juan Lateral are now either finished or under construction. The lateral is more than 75% complete.
Initial water deliveries are scheduled for late 2028, with the overall project expected to be completed by the end of 2029.
Large Pipes and a High-Tech Control System.
The Block 2-3 project involves more than simply burying a water line.
Crews will install 42-inch and 48-inch transmission pipes that will form the backbone of this section of the water system.
The contract also includes regulating tanks, crossings, structural supports, valves, erosion-control measures, and equipment designed to protect buried metal components from corrosion.
A remote monitoring and control system will also be installed, along with fiber-optic cable. The technology will allow operators to monitor and control pipeline operations remotely.
The $81 million contract will be Carstensen Contracting’s first work on the Navajo-Gallup project.
Funding comes through the Reclamation Water Settlement Fund authorized by Congress under the Omnibus Public Land Management Act of 2009.
Nearly 300 Miles of Pipeline.
Construction of the Navajo-Gallup Water Supply Project began in 2012.
Once completed, the overall system will include approximately 300 miles of pipeline, two water treatment plants, 19 pumping plants and multiple water storage tanks.
The project is a cornerstone of the Navajo Nation Water Rights Settlement in the San Juan River Basin in New Mexico.
Beyond the size of the construction project is a basic need for household water.
According to Reclamation, more than one in three people on the Navajo Nation lack indoor plumbing and must haul drinking water to their homes.
The new contract moves one of the project’s remaining major pipeline sections toward construction as Reclamation works toward initial deliveries in 2028 and completion of the system in 2029.
Pictured: Example of open pipe trench install being utilized on the Navajo-Gallup Water Supply Project. Bureau of Reclamation.
