AUSTIN—The Vista Ridge Water Pipeline project suffered a setback Monday when the Texas Water Development Board failed to move the pipeline's funding application forward.

The proposed pipeline would move water from Bastrop and Lee Counties to San Antonio.

"It's a boondoggle project. We’re not going to stand for it. If they want a full-blown water war in the region, that's exactly what they're going to get,” anti-pipeline activist Linda Curtis said.   

While Curtis and her fellow activists might not have won the water war Monday, it appeared they won a small battle. The construction company behind the water project requested an $885m low-interest loan from the state. The board rejected that loan application due to lack of information about the project.  

"Well the action taken by the board today actually had to do with 28 projects that were part of our executive administrator's prioritization of this year," said Texas Water Development Board Chairman Bech Bruun.

The pipeline's loan request was not one of those 28 projects moving forward with funding. However, Curtis still says it was only “a partial victory”, since the San Antonio Water System’s funding proposal was accepted Monday, meaning it is one step closer to funding.

So as this pipe dream gets closer to reality, Curtis said she will continue the fight.

"To really raise some ruckus about this,” said Curtis. “We don't want any funds going to Vista Ridge."

The state will approve the final applications for the 28 water projects this summer.