In 2004, ACTEW announced that the creation of a large reservoir by damming the Gudgenby River, below Mount Tennent, was one of three options being considered as part of the Future Water Options Project in order to provide improved reliability and increased supply of potable water for Canberra and the ACT. By 2005, the ACT Government decided that the creation of the Mount Tennent dam would not proceed; in favour enlarging the Cotter Dam.