1. Short title This Act may be cited as the Headwaters Protection Act of 2023 . 2. Water Source Protection Program reauthorization and improvements Section 303 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6542 ) is amended— (1) in subsection (a)— (A) in paragraph (1)— (i) by redesignating subparagraphs (G) and (H) as subparagraphs (K) and (L), respectively; and (ii) by inserting after subparagraph (F) the following: (G) an acequia association; (H) a local, regional, or other public entity that manages stormwater or wastewater resources or other related water infrastructure; (I) a land-grant mercedes; (J) a local, regional, or other private entity that has water delivery authority; ; (B) by redesignating paragraphs (1) through (7) as paragraphs (2) through (8), respectively; and (C) by inserting before paragraph (2) (as so redesignated) the following: (1) Adjacent land The term adjacent land means non-Federal land, including State, local, and private land, that is adjacent to, and within the same watershed as, National Forest System land on which a watershed protection and restoration project is carried out under this section. ; (2) in subsection (b)— (A) by inserting and adjacent land before the period at the end; (B) by striking The Secretary shall and inserting the following: (1) In general The Secretary shall ; and (C) by adding at the end the following: (2) Requirements A watershed protection and restoration project under the Program shall— (A) protect and restore watershed health, water supply and quality, a municipal or agricultural water supply system, and water-related infrastructure; (B) protect and restore forest health from insect infestation and disease or wildfire