The state Assembly passed a package of water bills and the bond measure to fund them before dawn Wednesday. The Senate—which earlier passed a less costly package—later approved the final version.

The plan calls for restoring the crucial Sacramento-San Joaquin Delta. It also provides funding for new dams, groundwater cleanup, conservation and habitat restoration.

Schwarzenegger calls it a historic achievement that will allow California to prosper.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

SACRAMENTO (AP)—The state Assembly has approved an $11.4-billion bond to fund a comprehensive overhaul of California's antiquated water system.

The measure passed before dawn Wednesday would pay for new dams, groundwater cleanup, conservation and habitat restoration.

It's part of a package of measures intended to overhaul California's decades-old water system. The Senate passed the package a day earlier, but the Assembly added additional money. The Senate is expected to approve the new package Wednesday.

Gov. Arnold Schwarzenegger calls passage an historic achievement that will allow California to prosper.

Lawmakers have long struggled over ways of restoring the crucial Sacramento-San Joaquin Delta while creating stable water supplies for cities and farms.
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