Published: Dec 14, 2010 9:01 PM EST
Updated: Dec 14, 2010 6:01 PM EST

ATHENS, Ga. (AP) - Gov.-elect Nathan Deal said his state budget proposal will contain borrowing for new reservoirs as Georgia tries to resolve a long-standing three-state water dispute.

Deal said he's already talked twice with the incoming governors of neighboring Florida and Alabama at a pair of national meetings.  He expressed optimism about negotiations moving forward.

A federal judge has said he will severely restrict Atlanta's use of Lake Lanier in 2012 unless political leaders in Georgia, Alabama and Florida reach a deal to end 30 years of fighting over water usage.

Deal said that Georgia has to show it has done everything it can to use water effectively and efficiently.

And he said the state must some responsibility for the huge costs of creating new water supplies.