SACRAMENTO, Calif. — California lawmakers today passed an $11 billion overhaul of the state’s antiquated water system in a bid to supply a soaring population while preserving a fragile environment.

After a long night of debate, the state Assembly voted in favor of the comprehensive package of water bills and a bond measure to fund them. The Senate also approved the deal.

Gov. Arnold Schwarzenegger was expected to sign the five-bill package.

The plan provides funding for new dams, groundwater cleanup, conservation and habitat restoration. It gives Schwarzenegger comprehensive tools to begin restoring the crucial Sacramento-San Joaquin Delta and create a stable water supply for cities in Southern California and farmers in the Central Valley.

“Water is the lifeblood of everything we do in California. Without clean, reliable water, we cannot build, we cannot farm, we cannot grow, and we cannot prosper,” Schwarzenegger said.

Democrats and Republicans have spent months hashing out a package of bills intended to change how water is used in California and manage the delta, the estuary that funnels fresh water from the north to the south where most people live.

At the center of the package is a bond that has grown in the past two days to $11 billion to pay for new dams, groundwater cleanup, conservation and habitat restoration, including $100 million for Salton Sea efforts and $20 million for the New River.

The water plan also includes creation of a seven-member governing council to oversee the delta that funnels fresh water from Northern to Southern California, where most of the state’s population lives. The maze of earthen levees is susceptible to earthquakes that could halt pumping for months.

Federal courts and agencies have ordered reductions in pumping to protect he delta’s collapsing ecosystem.

Legislators want to require California cities to use 20 percent less water by 2020, although large urban areas such as Los Angeles and San Francisco would not have to meet such a high threshold because per-capita water use is lower than other parts of the state.

The addition of the last billion dollars in the bond came late Tuesday by the Assembly, which wanted more money for water recycling and conservation.

Sen. Denise Ducheny, a San Diego Democrat whose district includes part of the Coachella Valley, on Tuesday called the water package a "balanced approach" that that "will hopefully give confidence" to businesses waiting to invest in California.

"It is a step in the right direction," Ducheny told The Desert Sun Tuesday. "I think it's good for all of us. We need to do something. We need to figure out how to address these issues."

Erica Felci of The Desert Sun contributed to this Associated Press report.