Lacey, Washington is overhauling a critical water reservoir that helps supply one of the Pacific Northwest's fastest-growing suburban corridors, committing up to $7.3 million to repair a facility that shows signs of significant structural wear after decades of use.

The Hawks Prairie Reservoir, a 4-million-gallon steel tank off Marvin Road NE in northeast Lacey, needs roof and rafter repairs, new foundation anchor work, updated corrosion protection, and full interior and exterior recoating — a scope that suggests years of accumulated deterioration. The project also includes electrical upgrades and new water line connections. Construction is expected to take roughly nine months once underway.

The stakes are high in Hawks Prairie. The area has transformed over the past two decades from undeveloped land into one of Thurston County's busiest commercial and residential zones, with major retailers and thousands of new homes filling in along the Marvin Road corridor. That growth has strained water infrastructure that wasn't originally built for a city of Lacey's current size, now around 60,000 residents. The city's water utility relies heavily on groundwater and uses storage reservoirs like this one to maintain pressure, supply fire flow, and hold emergency reserves.

A notable feature of the project is that some of the work is being structured to qualify for FEMA reimbursement, with the project split into separate FEMA-eligible and non-FEMA-funded bid components. That structure typically signals either recovery from a federally declared disaster or proactive hardening of critical infrastructure against future events. Lacey sits squarely in the Cascadia Subduction Zone, where a magnitude 9.0-plus earthquake is considered a serious long-term risk, and FEMA has been pushing Pacific Northwest cities to reinforce water infrastructure before such an event occurs. The city has not publicly disclosed which disaster or mitigation program is driving the federal funding.

Puyallup-based Absher Construction Company is serving as the general contractor, managing subcontractor bids for the work. The project is subject to Washington State prevailing wage requirements.

With bids now submitted, the next step is contract award and mobilization. Residents in Hawks Prairie shouldn't expect major disruptions to water service — rehabilitating an active reservoir requires careful sequencing to keep supply intact — but the nine-month construction window means the work will stretch well into 2027.