The town's water comes from two reservoirs in the mountains behind the town and from wells. Both reservoirs and Monument Creek, which flows out of them, are considered part of the town's watershed. The town's namesake lake dried up completely during the summer of 2012 due to ongoing extreme drought conditions. Local citizens investigated various ways to fill the lake and keep it healthy on a permanent basis. However, the town's Board of Trustees held a firm stance against transferring water from the reservoirs to be stored in the lake, asking "Should our water supply be protected for the health and safety of all of our citizens, or should it be utilized for mostly aesthetic purposes?" They provided no indication of what a valid purpose to keep they lake full might be. Downtown businesses and resident morale suffered greatly due to the lack of any surface water within city limits. By 2014, the lake was nearly dry again