(1) The situation of San Francisco at the end of a long peninsula is not one favorable naturally for an abundance of water for a city of nearly half a million. During the golden days of ’49 the water supply came from a stream within the limits of the city. This stream is now in the Presidio and consequently is the property of the United States. Next Lobos Creek water was carried along the shores of the Golden Gate in a wooden flume and through a tunnel, then pumped to high reservoirs, from which it flowed through the city. As the city grew, the Spring Valley Water Company came into existence and furnished water for the city from a storage reservoir on Pilarcitos Creek, about twenty-five miles from the city. This company has gradually developed its system and about twenty years ago in Alameda county, on the east side of the Bay, began to obtain water from a large area of gravel beds. This water was taken into a reservoir, thence through aqueducts and submarine pipes into San Francisco. San Francisco is now consuming about 50,000,000 gallons of water per day. Of this amount over 8,000,000 gallons come from private wells in different parts of the peninsula. The Spring Valley Water Company furnishes about 41,500,000 gallons, of which about 17,000,000 gallons come from San Mateo County. City Engineer M. M. O’Shaughnessy of San Francisco testified before the House Committee on the Public Lands in Washington, June, 1913 that this city now needs 75,000,000 gallons of water per day and that about one-third of the city is without water and obliged to haul it in barrels and wagons. Development of the city has been considerably retarded through lack of water. Engineer O’Shaughnessy stated before the committee “for the past three or four months I have been making explorations all over the city in our narrow peninsula, trying to develop what strata there are that will be capable in an emergency of relieving our situation.” The Spring Valley Water Company is endeavoring to relieve the stress of the situation by starting the construction of the so-called Calaveras dam in Calaveras Valley. But the supply of water behind this is uncertain. The company has built galleries seven or eight feet deep in the gravel beds, into which the water percolates. After the disaster of 1906 San Francisco bonded itself for $6,000,000 and thereby constructed a high pressure auxiliary water system, operating about seventy-two miles of pipe. A reservoir was built at an elevation of 600 feet, filled through a pumping station drawing salt water from the bay. Another pumping station is now under construction at Fort Mason. The city expects to buy the Spring Valley Water Company by condemnation in case purchase cannot be effected otherwise. Since the passage of the Raker Bill condemnation proceedings have been begun.