Palisades Tahoe and its owner Alterra Mountain Company have reached a settlement with the League to Save Lake Tahoe and Sierra Watch that would sharply scale back a long-contested expansion of the resort’s base village in Olympic Valley, ending a legal battle that began in 2011. Under the agreement, the Village at Palisades Tahoe would be limited to 896 bedrooms—about 60% fewer than the original proposal and 40% below the most recent plan. Commercial space would be capped at 222,000 square feet, a 20% cut, and a planned indoor water park would be replaced by a smaller Mountain Adventure Center. Alterra also pledged to set aside land at the mouth of Shirley Canyon as permanent open space, refrain from seeking additional development within the project area for 25 years, and proceed with 296 beds of employee housing. The revisions are expected to reduce daily vehicle trips to the resort by 38%, addressing concerns about traffic, wildfire evacuation routes and Lake Tahoe’s water quality. The settlement will become final once Placer County approves the amended blueprint, which would close all remaining litigation over the project.