Palisades Tahoe and two conservation groups have reached a settlement that sharply scales back a long-contested expansion of the Lake Tahoe resort’s base village. The agreement, disclosed on 8 July, ends 14 years of litigation between resort owner Alterra Mountain Company and the League to Save Lake Tahoe and Sierra Watch, which had sued to block the project over traffic, wildfire evacuation and water-quality concerns. Under the deal, the Village at Palisades Tahoe would add roughly 896 bedrooms—about 60% fewer than the 2,184 originally proposed in 2011 and 40% fewer than the most recent plan. Commercial space will be capped at 222,000 square feet, down 20%, and a previously planned indoor water park is being replaced with a smaller Mountain Adventure Center. Alterra also committed to build 296 employee housing beds, place sensitive Shirley Canyon parcels under a permanent conservation easement and refrain from seeking additional construction within the project boundary for 25 years. The revisions are expected to cut daily vehicle trips to the Olympic Valley site by 38%, addressing one of regulators’ chief worries about emergency evacuations and lake pollution. The settlement still requires approval from the Placer County Board of Supervisors; if adopted, it would resolve all outstanding lawsuits and allow Alterra to proceed with a downsized project that supporters say better matches the region’s environmental and infrastructure limits.