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By Sherry Listgarten

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Development vs Environment at Lake Tahoe

Uploaded: Feb 19, 2023

I just finished reading an Environmental History of Lake Tahoe by David C. Antonucci. Tahoe has faced an evolving set of environmental challenges over the years, from resource extraction to development to climate change. How did we deal with these issues in the past, what were the consequences of our actions, and what is in store for the future, at one of the most spectacular places in the country?

Lake Tahoe in winter


In a short forty years in the late 1800s, we clear cut nearly all of the old-growth trees in the Tahoe Basin. Prior to the Gold Rush, Tahoe’s forests were filled with 200-300 year old trees about 3-5 feet in diameter. The forests were shady with minimal understory -- they say you could drive a wagon through them easily. Occasional fires formed groves and kept smaller growth under control.

An old-growth tree still standing in Tahoe City

But in the 1860’s two events conspired to drive demand for the wood in those trees. One was the discovery of silver and gold in Virginia City, Nevada. A massive amount of wood was needed for mine construction, for building homes and businesses in the area, and for fuel for heating. The east slope of the Carson range was quickly cleared and lumber companies had to move into the Tahoe Basin despite the difficulty of extracting wood. Special railways were built to haul wood from the edge of the lake up 1000 feet to the Basin’s rim, where it could then be floated down for miles in specially designed flumes to the railroad in Nevada.

Cut logs were floated in booms over Lake Tahoe to Glenwood, where a railway took them up and over the Carson range to Nevada. Source: Western Nevada Historic Photo Collection, contributed by Stephen Gennerich

At the same time, the Central Pacific Railroad was being extended from Sacramento into Truckee. The snow sheds and railway ties demanded a lot of wood. Lumber was floated down the Truckee river from Lake Tahoe to where it was needed.

By the end of the 1800s, two-thirds of Tahoe’s forest was clear-cut, with the rest vanishing in the early 1900’s. The loss of forested habitat led to the disappearance of grizzlies, wolverines, red foxes, wolves, and bighorn sheep from the Sierras. It also changed the nature of the forests themselves. White fir that thrived in the sunny environment post-logging is now dying off because it is vulnerable to drought. These dead trees combined with overly dense second-growth forest has created a tinderbox out of the Tahoe forests that poses a significant threat to the area today.

The reddish tops of dying trees weakened from drought and insects can be seen all around the lake basin. Here they are visible in Tahoe City.

National Park Status

The decimation of the forests did not go unnoticed at the time. Several attempts were made in the late 1800s and early 1900s to turn Tahoe into a National Park, but none succeeded. From what I read, several factors were responsible for the failures: a reluctance to use government funds to pay for the ravaged land, since that would reward the very people who had caused the damage; resentment among Tahoe locals that San Franciscan “elites” were proposing to restrict their livelihoods and freedoms; and, towards the end, a concern that the area was already too exploited and developed for tourism.

The conservation efforts were not entirely futile. In 1899 much of the area was designated a “Forest Reserve” and in 1907 it was converted to National Forest. Government began to purchase the damaged land, 85% of which was privately held. Today public agencies own 88% of the land, and 78% of all land in the basin is National Forest. This protection gave the forests a chance to recover.

Water Troubles

Water is a constant source of contention in California, and Tahoe has been no different. The lake was first dammed in 1870 (by Leland Stanford’s company) to help send logs down the Truckee River. Lake water was used to power sawmills, to clean out waste, and to fill log flumes. Dry Nevada eyed the lake’s water for agriculture and in 1905 built the Derby Dam downstream on the Truckee to divert water from Pyramid Lake to Lahontan Valley farms. The level of Pyramid Lake dropped 84 feet, and nearby Lake Winnemucca dried up entirely.

More demand for Tahoe water emerged. The Tahoe dam was upgraded in 1913 to provide electricity, and arguments ensued about the appropriate lake level, with lakefront owners concerned about their property, environmentalists concerned about erosion and loss of spawning habitat, and water users concerned about access to their supply.

Postcard of the Tahoe dam circa 1919. Source: Western Nevada Historic Photo Collection, contributed by Linda Henris

Development impacted water quality, with lumber mills dumping sawdust and homes and businesses dumping sewage. This combined with over-fishing caused the native fish population to plummet. People tried to correct this by adding new species of trout, along with crayfish and then Mysis shrimp to provide food for the new species. But the native Lahontan cutthroat trout disappeared and the shrimp are now outcompeting the local zooplankton (Daphnia) that help to keep the lake clear.

Today the lake continues to struggle with the impact of the intentionally introduced non-natives as well as a number of other invasive species. Many demands remain on Tahoe’s water: agriculture, recreation, fish and wildlife, municipal water supply and hydroelectric generation. The lake level is carefully regulated and a watermaster controls the outflows and who gets what.

Cars and Year-Round Tourism

Through the 1940s, relatively few people came to Tahoe. There were only about 3000 residents and visitation was seasonal. Tourists tended to use trains and ships, and they stayed together in resorts so their impact was relatively low. A special train, called the Snowball Special, ran a (long) day trip from Oakland to Sugar Bowl. Travelers with more time would take a train into Truckee and then a smaller train into Tahoe City where they would either stay at a resort or take a ship to another part of the lake. Once at the lake, they would generally stay in one place and use nearby services.

Passengers on the Lake Tahoe Railway from Truckee to Tahoe City could walk from the pier to their inn or hop on the SS Tahoe to go elsewhere along the lake. Source: Western Nevada Historic Photo Collection, contributed by Stephen Gennerich

That all changed as cars got more popular. By 1935 all roads in the basin were paved to facilitate car travel. In 1941 the little railroad from Truckee to Tahoe City was dismantled and sold for scrap. 1947 saw the first paved two-lane roads into the basin, and i80 was extended to Truckee in time for the 1960 Olympics at Squaw Valley.

Businesses, resorts, and parking lots spread out around the lake to attract the new drivers. Sugar Bowl opened in 1939, Palisades in 1949, and Heavenly in 1956. With the Olympics on TV, Tahoe became a ski destination, and Alpine and Mt Rose followed in the 1960s and Northstar and Kirkwood in 1972. At the same time casinos proliferated, creating more opportunity for year-round recreation. Harveys and Harrah’s opened in 1957, and a few others in the next two decades.

With a dwindling reliance on transit and increasing numbers of visitors, traffic quickly grew bad and has only gotten worse for both visitors and locals. Residents cite traffic as one of their top concerns.

Traffic is a top issue for Tahoe residents. Source: Tahoe Prosperity Center’s 2022 Community Report

Development, Lawsuits, and More Lawsuits

Along with year-round activity and cars came demand for housing. A 1964 plan for the region called for a population of 313,000 by 1980, with three roads ringing the lake and a bridge over Emerald Bay. Developers went all-out building condominiums. 1500 homes were built in the Tahoe Keys in the 60s, 6500 homes in Tahoe Donner in 1971, 9000 units in Incline Village in the 70s, and so on. The local housing stock went from 7000 units in 1960 to 46,000 units in 2010. More casinos and ski areas were approved.

But this development brought environmental harm. There were multiple sewage leaks into the lake, and erosion and sediment from construction and traffic started to cloud the water. Lake clarity fell from 102.4 feet in 1968 to just 67.4 feet in 2000. Scientists began to study the health of the lake in earnest, and concerned residents pushed back on aggressive plans. In a particularly egregious example, South Lake’s Tahoe Keys development destroyed a big part of the Upper Truckee Marsh, an important inlet to the lake that filters water and provides critical habitat. The warm waters of the Keys lagoon soon became home to invasive fish, mollusks, and aquatic plants.

The Tahoe Keys development was built on top of sensitive marshland at the southern edge of the lake and created a shallow warm lagoon that provides habitat for invasive species. Source: Google Maps

California began putting restrictions on development, but Nevada had little interest in such constraints. While the states bickered, developers angry with California sued to begin projects. Local governments sued over local control. Property owners sued over property rights. Unhappy residents started blaming lake scientists for exaggerating the harms -- the forest was recovering from logging and the lake would recover too, it was all part of a natural cycle. As livelihoods were threatened by regulation, public meetings got tense, requiring armed guards. Some developers started bypassing the permitting process altogether.

It took years and a concerted effort to build consensus across state and local governments, tribal governments, environmental organizations, property rights advocates, scientists, and federal agencies. Over time they settled on a plan that would cap development in the basin, permit square footage dependent on environmental sensitivity, and allow landowners to trade development rights. At the same time, the federal government got funding to buy up property with low development potential. Temperatures cooled and people rallied around a new plan issued in 1987 by the new Tahoe Regional Planning Association. Today several organizations work to balance economic growth with sustainability, with an emphasis on restoring sensitive habitat while building up in town centers and encouraging mass transit.

But it is an uneasy truce between developers, residents, and environmentalists. Much of the housing stock sits empty as second homes, and prices have become unaffordable for locals. Restoration is slowly happening and transit is getting some traction, but the money for those comes from new development, causing some to worry that the planning organizations have an inherent conflict of interest. Development proposals are popping up around the lake. Tiny Tahoe City (population 2,700), has plans for two large hotel and condominium complexes along with a 150-unit affordable housing development. Placer County continues to adjust its Area Plan to encourage responsible redevelopment and economic growth.

A large hotel-condo complex proposed for lake’s edge in Tahoe City. Source: Boatworks

Going Forward

We see from Tahoe’s history that it is difficult to restore a damaged ecosystem, whether it is a forest or a lake, and we learn that our tinkering can cause more harm than good. We see that business interests are powerful, and balancing their interests with those of residents and the environment is difficult. We learn that government intervention can help, whether it is providing funds to protect and restore or crafting regulations to prevent damage. But money is limited, space is constrained, and regulation can chafe. We find that we are not as smart as we think, and nature is not as resilient as we would hope. An ounce of prevention is worth a pound of cure, but that ounce is easily dismissed.

I wish I were more optimistic about the future of Lake Tahoe, but we are asking a lot of the residents and policy makers. It is not easy to live in a place that so many want to visit. It is even harder to protect such a place, which takes time, knowledge, foresight, and effort. And it is nearly impossible to succeed when multiple governments are involved and vested interests with deep pockets are pushing for advantage. Even when everyone agrees that they care about the lake, there are degrees of caring and history shows us that the degrees with the most money involved will prevail.

Will we change the course of Tahoe's history and find a way to both protect and enjoy the area? Or will we love it to death? I’d love to hear your encouraging thoughts in the comments!

Notes and References
1. An initial version of this post included information about the impact of climate change at Tahoe in a section at the end. But it made this post too long and unwieldy, plus that topic deserves its own post, so I removed those paragraphs. If you are interested, this State of the Lake Report released in July 2022 is a great place to start.

2. A set of threshold metrics, evaluated every four years, is used to evaluate the environmental health of the Tahoe Basin. The next report will focus most on air quality, fisheries, soil conservation, vegetation preservation, water quality, and wildlife, with more attention to biodiversity, as described here.

3. Interesting fact: The daily evaporation from Lake Tahoe (half a billion gallons) would meet the daily water needs of 5 million Americans. Source: Tahoe Environmental Research Center’s State of the Lake Report 2022

Current Climate Data (January 2023)
Global impacts, US impacts, CO2 metric, Climate dashboard

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Posted by HeavenlyFountainResort, a resident of another community,
on Feb 19, 2023 at 1:45 pm

HeavenlyFountainResort is a registered user.

The Lake Tahoe Region has sustained years of anthropogenic impacts and continues to remain resilient. The true threat to the area is the 2nd homeowners and agencies like the USFS holding onto “Urban Forest" lots nestled between homes with little management, meanwhile people who have lived in the basin long term are being pushed out by deep pocketed individuals who seek to retain a Tahoe Address solely for the novelty of having a tahoe address. As the author points out, much of the housing stock remains empty and this is in a state where Gov Newsom remains adamant there is a housing crisis, but does not want to damage his family's investments like those within the Lake Tahoe Basin.

Posted by Vijay Gupta, a resident of San Ramon,
on Feb 21, 2023 at 8:30 am

Vijay Gupta is a registered user.

An excellent article with key historical reference points but all things considered, we cannot go back in time.

Lake Tahoe is simply too congested and the adverse environmental impacts will continue to worsen.

We own residential property near Donner Lake and are also witnessing the gradual over-development of adjacent properties.

Posted by Gary Nolan, a resident of Walnut Creek,
on Feb 21, 2023 at 9:30 am

Gary Nolan is a registered user.

It's too late to turn back time. When my grandparents had a small A-frame cabin near Tahoe City they had a septic tank for sewage treatment.

Given the population and visitor increases in the Tahoe Basin area, is there a sewage treatment plant nearby?

Truckee is about the only feasible place where there could be one.

Posted by Jeff Cowen Tahoe Regional Planning Agency, a resident of another community,
on Feb 21, 2023 at 1:01 pm

Jeff Cowen Tahoe Regional Planning Agency is a registered user.

Thank you for an excellent article Sherry! Your research and knowledge on Tahoe's issues ar much appreciated. As the public information officer for the Tahoe Regional Planning Agency (TRPA), I wanted to offer my appreciation and additional context. I fell deeply in love with Tahoe's incredible water clarity as a sportfishing captain in the 1990s and have been with the agency since 2006.
What's important to note and often missed when discussing development, environment, transportation, housing, etc. at Tahoe is that there are limits and caps. Whatever sign of the times people feel or see, there is no continued upward trajectory to it. 90 percent of all development allowed exists today. The development caps may not be hit for a few decades, but no subdivisions of existing land is allowed and more than 80 percent oft he basin is in public ownership. TRPA has slowed development substantially, to about 120 new residential allocations per year, spread over five jurisdictions in a 500-square mile watershed. Mr. Antonucci's book points out the land buyback programs as well that further reduce the development potential in the region. Overdevelopment of Tahoe is not possible. The 2012 regional plan update created no new tourist accommodation or commercial allocations.
It may be helpful also to know that the hotel project at Boatworks in Tahoe City is a redevelopment project with considerable buildings and uses already there. With most of Tahoe's town centers built out, infill projects that relocate existing development and upgrade water quality and transportation infrastructure are about all that remains.
Tahoe's quaint roadways, however, strain to handle the peak traffic volumes of day and overnight visitors, and by statute cannot be expanded. Hundreds of transportation improvements have been built over the years and many more are planned to fix the system. Mitigation fees from projects are helpful, but make up a small private share of what's being done. Thanks again! Jeff

Posted by Neal, a resident of Community Center,
on Feb 21, 2023 at 3:33 pm

Neal is a registered user.

@Jeff. What? "Overdevelopment at Tahoe is not possible?" Hogwash! It's already overdeveloped and there is room for 10% more development.

Posted by MyFeelz, a resident of another community,
on Feb 21, 2023 at 4:17 pm

MyFeelz is a registered user.

@Gary Nolan, in 2021, the South Lake Tahoe sewage treatment system failed after July 4 weekend. Over 2 million gallons of sewage sat in the open air, on top of black tarps, while crews tried to repair the system. So yes, technically, there IS sewage treatment in Tahoe, but it absolutely cannot handle the load of hundreds of thousands of people flushing over a 3 day period: Web Link

Despite anyone suggesting that MORE development is possible, the cost is polluting the lake beyond redemption. I was there last year, a year after the Caldor fire, and there were still deadly algae blooms on the lakeshore. It's not so much as a question of development, but curbing tourism so that the next sewage system failure won't flow straight into the lake. The saying "sh** flows downhill" is true. When Lake Tahoe is declared dangerous to humans and wildlife, that will be the end of tourism. All those second homes will be worth nothing. Air BnB next to a place that smells like an overflowing toilet isn't appealing.

Posted by Jeff Cowen Tahoe Regional Planning Agency, a resident of another community,
on Feb 22, 2023 at 12:10 pm

Jeff Cowen Tahoe Regional Planning Agency is a registered user.

@Neal. I concede that overdeveloped is too subjective. I should say that as most environmental threshold indicators continue to trend toward improvement, the impacts of development are being mitigated, successfully in some cases.
Water quality improvements are happening with pollutant load reduction from roadways, neighborhoods, and restored streams, however the impacts of climate change on water quality are still being studied. As others mentioned here, algae growth and effects from warming water temperatures may be worsening even though the loss of lake clarity has essentially halted.
What is known is that the regional plan's existing development caps requirements on pollutant load reduction, and transportation improvements will remain central to management strategies to restore the health of the watershed.
Follow up if needed at

Posted by Sherry Listgarten, a Almanac Online blogger,
on Feb 23, 2023 at 2:34 pm

Sherry Listgarten is a registered user.

@Heavenly, I agree that the housing situation around Tahoe is a real problem and that empty second homes are a big part of it.

@Gary, afaik, there are only two wastewater treatment plants around Tahoe, one in Incline and one in South Lake. For the California portions, the sewage from North and West shore, along with that from Palisades and Alpine, goes out through a pipe that goes along the Truckee River to Truckee, where it’s processed.

@Jeff, thanks for reading and for adding your feedback. I do understand that there are some caps but given all of the oversized development happening along with continued stress on the Tahoe environment, I’m skeptical of the accounting and I am concerned about regulatory capture. (Cf California's ineffective cap-and-trade system for emissions.) I don’t have a solution, but I feel badly for the people who live in Tahoe and I’m not optimistic about our ability to limit impact on the lake and forests if the region continues to grow this way.

I want to give a shout-out to Palo Altan Bill Hewlett, who did a lot for the Tahoe region. In 1971 he bought 645 acres that were going to be developed into condos and a hotel and sold it to the Forest Service. It is now a campground run by the Washoe. What a great gift.

Anyway, thanks all for the thoughtful comments.

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