Tall rock formations in Colorado Springs, one of the fastest growing regions in Colorado.

Colorado Springs’ $200M Loop project seeks to address long-term water stability

June 30, 2025

A water treatment and distribution project in Colorado Springs, Colorado, is moving to the next stage of development.

The Loop – an estimated $200 million water renewal system project in El Paso County – entered the design phase earlier this month. Spearheaded by three state agencies, the project will provide water resources to supplement the depleting Denver Basin and support local development with scalable water supplies.

The project will be funded by municipal bonds or through the pursuit of a public-private partnership, according to county officials. Construction is expected to begin within the next two years.

Urban development in El Paso County, including the growing Colorado Springs region, is almost entirely reliant on the Denver Basin, which is split between dozens of local towns and districts. The basin is not a sustainable source of water, resulting in dwindling supplies threatening the local ecosystem, developments and water affordability. According to project officials, relying on local wells will eventually become unsustainable, leaving the area with skyrocketing costs and limited options for water sources.

The Loop project is designed to meet that demand, securing a steady supply of renewable water to spur development and support residents without further depleting the Denver Basin. Rather than rely solely on the basin, The Loop would recapture groundwater as it travels south of the basin that was originally used by customers, treated and released back into nearby creeks and rivers.

A pipeline will be built to connect sources from the southern part of El Paso County to the north. Water will be directed through treatment facilities before being conveyed north for injection into the Callahan Reservoir. The project will include building dedicated treatment facilities and pump stations along the line to better secure a salable water supply for all nearby current and future developments.

Concluding the design stage and final cost estimates, county officials will decide to approve the iteration of The Loop project, which is anticipated by the end of 2025.

If completed, The Loop will single-handedly replace Denver Basin wells, bringing new water into the UBS Basin and providing full redundancy for all involved utilities. The project will be tied to participating wastewater systems to further multiply available supplies through return flows.


 Photo by Rod Dion from Pexels

Adam Rollins

Adam Rollins brings his expertise as a Researcher and Writer to the Managing Editor role for several of SPI's key publications, including Government Contracting Pipeline, Texas Government Insider, and the latest addition, Government Market News. With a rich background as a freelance Content Specialist, Adam has honed a passion for learning and information gathering, delving into various industries. His research and writing have spanned a range of topics, from artificial intelligence (AI) technology, conservation, and project outsourcing, to managed IT services and software development.

Holding a bachelor's degree in English from Texas State University, Adam's proficiency in message development is complemented by his robust research skills and seasoned writing experience. These attributes make him an invaluable asset to SPI, ensuring the delivery of insightful and impactful content to the company's clientele.

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