Judge Ann Aiken could rule right after the hearing or wait a week to rule.
Central Oregon Landwatch and Water Watch Oregon have filed a lawsuit trying to halt the water project, claiming it would hurt the environment.
Bend Mayor Jim Clinton has been meeting with the opponent trying to reach a settlement.
"Once the judge makes a decision the prevailing party will feel a lot less impetus to do a settlement. I wouldn't be surprised after she decides she instructs the parties to see if they can't settle."
The hearing is scheduled for this Thursday from 10 A.M. to noon in Eugene.