The Cody Canal Irrigation District was formed in 1911 and serves approximately 11,433 acres of land. The Cody Canal diverts water from just above the South Fork of Buffalo Bill Reservoir. The canal is nearly fifteen miles in length and serves the area to the south and east of the City of Cody. Water uses under the canal are increasingly urban in nature. While many customers are still irrigating agricultural crops, residential lawn irrigation has become a growing component of water use within the District. The canal also provides irrigation water to the City of Cody.

Aqua Engineering, Inc. was contracted to perform a study that includes a detailed inventory of the entire infrastructure; evaluating the feasibility of rehabilitating the existing conveyance and delivery system; reviewing the hydroelectric generating potential at certain sites and an analysis of the marketing potential associated with hydropower generation.