; (II) not more than 2 recreational developments in a watershed project containing— (aa) not less than 75,000 acres; and (bb) not more than 150,000 acres; or (III) not more than 3 recreational developments in a watershed project containing more than 150,000 acres. (2) Advance payments If the Secretary and a local organization have agreed that the immediate acquisition by the local organization of land, easements, or rights-of-way is advisable for the preservation of sites for works of improvement included in a plan from encroachment by residential, commercial, industrial, or other development— (A) the Secretary may advance to the local organization from funds appropriated for construction of works of improvement the amounts required for the acquisition of such land, easements, or rights-of-way; and (B) except where such costs are to be borne by the Secretary, such advance shall be repaid by the local organization, with interest, prior to construction of the works of improvement, for credit to such construction funds. (3) Mitigation of fish and wildlife habitat losses (A) In general The Secretary may bear an amount not to exceed 50 percent of the costs of the land, easements, or rights-of-way acquired or to be acquired by a local organization for mitigation of fish and wildlife habitat losses. (B) Outside boundaries An acquisition under subparagraph (A) shall not be limited to the confines of the watershed project boundaries. (c) Future demands (1) In general The Secretary shall require, as a condition of providing Federal assistance for the installation of works of improvement, that— (A) the cost of water storage to meet future demands may not exceed 30 percent of the total estimated cost of the reservoir structure