The dam project was embroiled in controversy and engendered strong opposition by environmental groups and embittered displaced residents. Because of considerable opposition from environmental activists, the unavailability of government funding for the dam, and a geological assessment revealing the dam would be located near active fault lines, the federal government decided to abandon the dam project in 1978. The lands acquired were then transferred to the National Park Service, and the holdings were reorganized to create the Delaware Water Gap National Recreation Area.