Metro Atlanta could suffer “$26 billion to $36 billion in lost business” if it loses the tri-state water war, the head of the Metro Atlanta Chamber of Commerce said today.

Sam A. Williams, president of the downtown-based organization that promotes businesses and economic development in a 28-county region, talked about the state’s dire water situation at the Buckhead Business Association’s weekly breakfast meeting at City Club of Buckhead. For two decades, Alabama, Georgia and Florida have been fighting for rights to water that flows from Lake Lanier down the Chattahoochee River to the Gulf Coast.

In a July 17 ruling, federal Judge Paul Magnuson of Minnesota ordered Georgia must get Congressional approval for it to continue to use the lake for drinking water or else it could only take about half of its current water supply from it. The state has until July 17, 2012 to come up with a solution, and it has appealed the judge’s decision. Currently the metro area uses 680 million gallons of water a day and would have to replace 250 million to 280 million gallons if the judgment stands, Williams said.

“That is a Draconian measure but you must address the [water] problem,” Williams said. He added the chamber is using a three-pronged approach to do so: conserve more water, capture more water and control and manage water resources.

On Jan. 21 the metro chamber board released a report on its Water Contingency Planning Task Force findings and recommendations. He said a new reservoir has not been built since Lake Lanier was constructed in 1949, when the metro area’s population was 530,000, a tenth of what it is today.

“Judge Magnuson said the reason Lake Lanier was built was for flood control, power generation and navigation, and that [Georgia has] no legal right to use the lake for drinking water,” Williams said.

According to a chamber analysis, if there is a water shortfall, Gwinnett and Forsyth counties would lose 95 percent or more of its water and DeKalb and Fulton counties would only be able to collect 20 to 50 percent less than it does today. Other metro counties, because they have their own reservoirs, would lose less. To replace that water, options including building a new reservoir, which would take more than a decade, and running a pipe from Fairburn all the way back to Gwinnett to pump water from the Chattahoochee back into that county, at a cost of $5 billion.

Association member Nancy Lutz asked, “Is there a possible solution with either Alabama or Florida?”

Williams responded, “I think we’ve got a pretty good chance to settle things with Alabama, partly because the Chattahoochee does not feed into that state. It only borders Alabama. Florida is going to be a real challenge. Stay tuned.”

Though much of his speech was devoted to water, Williams also talked about job creation and Atlanta’s major events.

In 2009 the chamber recruited 52 new companies and their 6,600 new employees to metro Atlanta, Williams said. Four of those businesses - Cordil, Quofore, SOCAPS and Transparent - were courted to Buckhead. After the meeting Williams was asked about the chamber’s role in bringing companies and jobs to the community.

“We’re working all over the region with the Atlanta Development Authority and the business associations and real estate companies,” he said. “They have been active in this role."