Bend's mayor, Jim Clinton has been meeting with the group's leader, that is suing to stop the project.
Paul Dewey with Central Oregon Landwatch and Jim Clinton are trying to find if there is any middle ground.
"The reaosn I got in the middle of this and got involved is its damaging to the city, the environmentalists and Tumalo Creek. So I saw an opportunity to get in a place where we might not necessarily agree, but agree enough to go forward."
In November, Central Oregon Landwatch filed a second lawsuit to stop the city's water project -- which is trying to install a new pipeline.
Landwatch believes the project will hurt the environment.
A Eugene judge is expected to rule on the lawsuit sometimes around Janaury 20th.