They filed a lawsuit last year that stopped the project and that's when the city came up with a new plan that took less water out of Tumalo Creek.
Bend City Councilor Mark Capell is not surprised Central Oregon Landwatch doesn't like this plan any better.
"We need to give the citizens of Bend a safe, reliable supply of drinking water. Where Landwatch just concerns itself with the river and stopping growth. The City Council approach is much more balanced. We'll consider how do we do growth intelligently, protect the river and supply water."
Capell expects Central Oregon Landwatch to file another lawsuit in federal court this summer objecting to the proejct.
But he's confident the Forest Service's assessment of the project's minimal environmental impact, will help them win in court.
The city hopes to start construction on the pipeline this September.