Judge Ann Aiken ruled last Friday that Central Oregon Landwatch failed to prove that the city and the forest service would harm the environment when putting in the pipeline for its water oorject.
City Councilor Mark Capell has been a vocal supporter of the project and is happy it can go forward.
"It's a great day for the city of Bend's water. This pipeline supplies half of the city's water, the other half comes from wells. Short term its an expensive project, but in the long term it will save the ratepayers money."
Cappell says he's heard from a lot of happy constituents.
"I've probably had 20 or 35 people give me high fives. Everyone I'm talking to is excited we can go forward on this proejct. I believe the opponents are a very vocal minority. It's nice to see people who favor the project have finally stepped up and said let's get it done."
City officials say they will move ahead with the first phase of the pipeline project this week.
The judge's decision will allow the city to coordinate the water project with work on Skyliners Road -- to save money.