If approved by Sedgemoor District Council, Bristol Water's £125m proposal will see a 9,400 million litre reservoir built close to the existing Cheddar Reservoir.
The company said it was needed to meet growing demand for water, and hopes it can be operational by 2025.
Two public consultations into the plans have taken place this year.
Project spokesman Jeremy Williams said the majority of respondents were "more than satisfied" with the plans.
"We believe that, apart from providing vitally needed water supplies, it will also offer major recreational and conservation benefits."
But farmer Sarah Parsons said the reservoir would be detrimental to wildlife and plants.
Her family farm is on the proposed site of the reservoir, which she says is prime agricultural land.
"It's going to have a disastrous effect on the flora and fauna of the area," she said.
Plans for the new reservoir include a visitor centre, swimming and water sport facilities, as well as a cafe and picnic areas.
A planning application for a second reservoir in Somerset has been submitted to the local authority.