This paper compares the cost per acre-foot to the East Bay Municipal Utility District (EBMUD) of conservation versus an increase in size of Pardee Reservoir. The paper analyzes two components of the EBMUD’s 2009 Water Plan for meeting demands in 2040: promoting more rigorous conservation methods for its customers, and increasing the size of Pardee Reservoir by the construction of a new dam ¾ mile downstream from the existing location. Additionally, the paper analyzes five documents published by EMBUD over the last 12 years, for discussion of reservoir expansion, conservation targets, and climate change.