The judges upheld a 2002 lower court ruling that determined the Department of Environment and Natural Resources (DENR) correctly issued permits for the dam that is being built on the Deep river, at the border of Guilford and Randolph counties.The American Canoe Association and the Deep River Citizen’s Coalition alleged that DENR improperly issued permits and that the dam and the reservoir it would create would hurt the region’s water quality. The groups cited studies showing the project, which will provide 218M litres of water a day to several Triad-area municipalities, could generate chlorophyll that exceeds state water quality standards. DENR provided its own studies that said the standards would be met. A lower-court judge ruled that the state’s evidence was strong enough to uphold the decision by environmental regulators that there were ‘adequate assurances’ that standards would not be violated. The appeals court judges also ruled that the conservationists claims that water quality standards could be threatened was insufficient grounds for blocking construction, as DENR had taken measures to ensure quality.Work on the dam, which is being built by the Piedmont Regional Triad Water Authority, is nearly complete. Water from the Deep river is expected to be stored in the reservoir in late 2005.