A bill establishing the Mackenzie Municipal Water Authority was presented to the Texas State Legislature. It was approved in 1965. The four cities involved were to borrow $300,000.00 to purchase 2,343 acres of land and to hold bond elections to finance the remainder of the several million dollar project. When voters in the municipalities approved the Mackenzie Dam Project in September 6, 1969 they authorized all phases of the project. The aqueduct was to be constructed first, the water treatment plant and pumping station later, when drinking water for the four cities was required.

Clayton Keller of Tulia was employed as business manager, and ground breaking ceremonies were held on September 23, 1972 . The construction contract were awarded to the firm of Gilvin-Terrell Inc. with George Dewald as the resident