Tenmile Creek provides the city of Helena with about 50 percent of its drinking water. The city owns first and second
Prior-appropriation water rights for a total of 550
miner's inches of the streamflow, amounting to about 8.9 million gallons of water per day. The city also built and maintains Chessman Reservoir and Scott Reservoir near the stream's headwaters, which retain excess water during periods of high precipitation, and release this water during periods of high demand (usually later summer and fall when stream flow is low). In 2011, the city of Helena and local landowners sued one another over how much water the city was permitted to take from Tenmile Creek. Landowners argued that the city was taking too much water from the stream. They also argued that the city should take more water from the nearby
Missouri River so that Tenmile Creek could sustain greater flows. The following year, the Bates Land Company put of Tenmile Creek water up for sale for $9.6 million ($ in dollars). The
water rights were third in line. The company offered the water rights to the city of Helena for just $1 million ($ in dollars), but the city said its Tenmile Water Treatment Plant could not accommodate the extra inflows. Fire is a serious threat to Helena's water supply. Fire could not only destroy the nearly 140-year-old wooden flume system that brings Tenmile Creek water to the city, but loss of forest and undergrowth would create immense erosion that would pollute Tenmile Creek and render it unusable for human use for as long as five years. Between 2000 and 2008, the city of Helena spent about $415,000 ($ in dollars) to create a wide vegetationless buffer zone on either side of portions of the flume to reduce the likelihood of fire damage. But with much of the flume running through the
Helena National Forest, the city needs the permission of the
National Forest Service to do additional work. The Tenmile Watershed Collaborative Committee was formed in 2008 to develop recommendations to address issues in the watershed, including fire alleviation, but no action had been taken on its recommendations as of 2013. ==Fishery==