The Cannonsville Reservoir is the city's third-largest water source, and the Delaware River Basin Commission manages the watershed that supplies water to New York, Delaware, Pennsylvania, and New Jersey. New York City relies on this basin for approximately half of its drinking water.

In 2024, the city experienced its first drought warning in over two decades, which led to a halt in planned repairs for the Delaware Aqueduct. During this period, reservoir levels dropped significantly, highlighting the vulnerability of the city's water supply.

The Delaware River Basin Commission has been exploring options for water storage since 2020, considering over 2,500 possibilities, including expanding existing reservoirs and building new ones. A feasibility study for expanding Cannonsville Reservoir is currently underway, expected to provide findings by mid-2028.

This initiative is a collaborative effort between New York City and the commission, aiming to enhance freshwater storage to support the river's ecology and communities during extreme drought conditions.