The Kentucky River Authority, created by act of the 1986 General Assembly, and now codified as KRS 151.700-730, is charged with managing the water resources of the Kentucky River watershed. The watershed covers all the drainage area to the Kentucky River. This area includes parts of 42 counties and has over 780,000 residents. The primary focus of the Kentucky River Authority is to protect and develop the water supply sources of the area to meet future demands. The primary water source is the main steam of the Kentucky River, extending 256 miles, from Beattyville to Carrollton where it flows to the Ohio River. There are 14 dams creating water supply pools on the Kentucky River. The Authority has title to all 14 locks, dams and adjacent properties and obtained those from the U.S. Army Corps of Engineers who constructed, maintained, and operated the facilities until they gradually abandoned operations between 1985 to 2001. There is a reservation at each dam comprising approximately 15 acres of land and buildings, which once housed the resident lock-master of Corps of Engineers. All commercial traffic on the Kentucky River stopped in 2001 and had not existed upstream of Frankfort for many years. Maintenance has varied widely, and all facilities have outlived their design life. The purpose of these facilities currently is to provide water supply and facilitate recreational use of the river.
The Authority collects a water withdrawal fee from each water utility and business user in the watershed that supports programs which benefit the entire watershed. In addition, a second fee is collected from users who withdraw water from the main stem of the river. Those funds support the lock and dam renovation and reconstruction projects the Authority undertakes from time to time.
The Authority is created in KRS 151.705 as a public corporation and independent state agency. The Authority is governed by a board that consists of the Secretary of Finance and Administration, the Secretary of Energy and Environment and ten members appointed by the Governor. Those ten include a mayor and a county judge-executive from jurisdictions within the Kentucky River Basin, an engineer and a water quality expert. The board appoints an executive director and other staff necessary to carry out the responsibilities of the Authority.
The Kentucky River Authority has built new dams at Dam 9 at Valley View in Fayette County, Dam 3 in Owen and Henry Counties, and Dam 8 in Jessamine County. Dams 9 and 3 retain the water supply for Kentucky American Water Company's Lexington and Owen County water treatment plants. Dam 8 retains the water supply for Nicholasville and Lancaster. Locks 1 through 4 are currently operational. Eighty-two uninterrupted miles of the Kentucky River are now navigable from Carrollton to Tyrone in Anderson County.
The Governor's budget includes additional funding in the amount of $11,500 in fiscal year 2027 and $23,500 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The General Fund portion is $3,000 and $6,100, respectively.