Lawsuits from Save the Colorado are challenging demand projections in an effort to leave more water in the Colorado River system.
Ad-hoc groups now planning to seek state funds to study project in more detail.
The city of Aspen declared a Stage 1 water shortage May 18 after flows peaked about three weeks early on Castle and Maroon creeks.
With construction slated to begin early next year, a federal lawsuit from six environmental groups could stop the project from moving forward.
The attorney for members of Deep Green Resistance and other plaintiffs files a motion to dismiss the lawsuit, a judge grants an order to do so, and the case in federal court is terminated.