The Deschutes National Forest Service is withdrawing its original approval of a special permit that would allow the waterline to go through the Tumalo Creek area.
Opponents went to court to stop the project and got a jduge to issue an injunction.
So the city of Bend has issued a new modified proposal that limits the water diversion for the project to remain at current levels, instead of using the maximum allowed by their water rights.
The Forest Service will hold public comment on the modified proposal starting December 20th until the end of January.
If the permit is approved, the project could move forward by this summer.
It's unclear whether opponents will fight this proposal as well.