As low water levels limit movement across the Panama Canal, a potential solution is in the works to mitigate the effects of future droughts on the region.

The Canal's board of directors submitted a proposal to the Panamanian government to advance the process of pursuing a set of solutions, some of which fall outside of the Canal's watershed, a Panama Canal Authority spokesperson told the press.

Rather than focusing on specific projects, the spokesperson said that the proposal calls for defining the Canal's watershed, modifying or expanding the limits established in the 2006 law, and eliminating some restrictions on the Canal for constructing new reservoirs.  Panamanian authorities have long sought a solution to increase the supply of fresh water in the Canal, allowing them to avoid future restrictions on its capacity during periods of lower rain. A potential project involves the construction of a multipurpose reservoir on the Indio River, the Canal's administrator Ricaurte Vásquez said earlier this year.  The Indio River is outside the Canal's watershed, so its construction would require government approval. Authorities have already conducted pre-construction studies on the potential reservoir based on information on the authorities' website.

The project will not likely be realised in the short-term as it first requires approval from several government entities, Panama's minister for Canal affairs, Arístides Royo, told a congressional committee in September.

Meanwhile, Canal authorities are also working on short-term solutions to improve fresh water supply to the Canal's locks. One of them involves the construction of a new raw water intake in Gamboa and an abduction line to connect Gamboa to Paraíso. This project is already in the tendering phase, with the deadline to submit offers scheduled for January 2024, based on information posted on the Canal's procurement page.

According to the spokesperson, this project will improve the use and reliability of water from Gatún Lake, the waterbody through which the Canal runs.