Development In 1884, Loon Lake Dam was constructed to provide summer and autumn water supply to Georgetown Ridge for mining. It was owned and operated by the Georgetown Divide Water Co. whom used it for irrigation and as a canal system from Gerle Creek to Georgetown Ridge. In 1943, E. F. Sullivan of the
Bureau of Reclamation proposed that Loon Lake be used for matters of power generation. In 1948, the Georgetown Divide Public Utility District (GDPUD) applied for appropriative rights from the State of California to appropriate 260,000 acre-feet of water from the American River basin. This was in order to divert water through Loon Lake and Gerle Creek for purposes of irrigation, stock-watering and domestic use.
Water Rights Originally, the Georgetown Divide Public Utility District (GDPUD) had obtained appropriative water rights from the State Water Resources Control Board. Also, GDPUD exercised pre-1914 rights for diversion of water from several tributaries of Pilot Creek in the
South Fork American River. The Georgetown Divide Water Company and other water companies invested that included Sierra Pacific Power Company, Loon Lake Water and Power Company, California Water Company and the Pilot Creek Water Company claimed pre-1914 rights in the South Fork Rubicon and Pilot Creek drainages for years prior to the 20th century. These rights included storage in Loon Lake, diversion from South Fork Rubicon River, Gerle Creek and Pilot Creek and all its tributaries. The water storage in Loon Lake was diverted and re-diverted into a canal system which eventually made its way from the South Fork Rubicon drainage into Pilot Creek drainage. A deed was signed in 1952 by GDPUD, whom paid for the rights and operation of all facilities in the Georgetown service area and the Georgetown Divide Water Company that included Loon Lake, diversions from Rubicon and Onion Creek to all Pilot Creek watersheds and diversions. Between the years of 1940 and 1950, Sacramento Municipal Utility District (SMUD) was interested in obtaining rights to facilities of the GDPUD in the South Fork Rubicon River watershed that included Loon Lake, for development of SMUD's Upper American River Project (UARP). In 1961, an agreement was made between SMUD and GDPUD and the associated rights to the South Fork Rubicon watershed were turned over. The pre-1914 water rights of the facilities in the Upper Rubicon watershed were also turned over to SMUD in the written deed. SMUD then applied for appropriative water rights in the Upper Rubicon watershed which included Loon Lake, diversions into Loon Lake and diversions out of the South Fork Rubicon basin into Silver Creek. ==Hydroelectric Project==