As drought saps water supply, California signs $2.6 billion ecological pact

LOS ANGELES — It's a major source of California's water supply and a vital habitat for fish, migratory birds and other species.

But the Sacramento-San Joaquin River Delta watershed is also a fragile ecosystem in decline, with human demands for water taking a harsh toll on the environment.

With a third year of severe drought straining water resources and pushing endangered salmon and other fish closer to extinction, California officials have announced a controversial $2.6 billion deal with the federal government and major water suppliers that they say will bolster the ecosystem.

The new pact, called a memorandum of understanding, reflects a realization that with climate change, "the system is collapsing quicker than the laws and regulations that exist can manage or heal that system," said Jared Blumenfeld, California's environmental protection secretary.

The proposed agreement lays out plans over the next eight years whereby agencies that supply cities and farms would give up water or secure additional supplies to help threatened species, while state, federal and local agencies would fund projects to improve habitat in the watershed.

State officials called the deal