The first phase of a 1,700-acre lavish resort in Lakeside passed state environmental checks last week.  

Sanitary facilities that will serve 79 homes in Territory 1889, a major subdivision formerly called Flathead Lake Club, were upheld by the Montana Department of Environmental Quality, according to a final environmental assessment released Sept. 15.  

State officials gave developers the go ahead to move forward with construction in Phase I, and the final plat is expected to go before the Flathead County commissioners for a vote on Thursday.  

Arizona-based Discovery Land Company is behind the major subdivision, which includes 359 single-family lots, a golf course, spa, restaurants, retail stores, offices and management facilities. Each of the subdivision's five phases are subject to review from the state and local government. 

In Phase I, developers will implement wastewater collection, public water supply and storm management systems for 79 residential lots, with each lot ranging between 1 to 12 acres in size. Construction work covers 18 to 20 acres, all west of U.S. 93* and within a mile of Flathead Lake. 

A state law passed in 2025 dropped the requirement to assess subdivisions like Territory 1889 under the Montana Environmental Protection Act. But given the intense public interest surrounding the project, the state agency decided an assessment was needed to understand potential environmental effects. 

PUBLIC WATER supply for the 79 homes will be sourced from three groundwater wells drilled on the property.  

But a permit for two of the wells is tied up in litigation in Flathead County District Court. A 2024 lawsuit against the Montana Department of Natural Resources argues the agency used outdated information when it permitted use of the wells to Lakeside County Water and Sewer District. Plans call for management and ownership of the public water system to be transferred over to the water and sewer district.  

The water supply system consists of a pump station, water storage tank, and associated transmission and distribution mains. Impacts on surface water are insignificant, according to state officials, meaning no analysis of its effect on senior water rights users is needed. 

Wastewater collected from the lots will travel offsite to Lakeside County Water and Sewer District’s existing treatment facility. There’s enough capacity in the open lagoons to treat the additional wastewater, with about 15,393 gallons per day of treatment capacity to spare, according to state officials.  

Stormwater facilities constructed in Phase I include 12 on-site retention/detention ponds, natural drainage ways, shallow channels and culverts. State officials determined these facilities will reduce the potential for increased runoff to water sources downstream. 

“Environmental protection is a priority for Territory 1889,” said Discovery Land Company Vice President Jeremy Pfile in a statement. “This approval will allow us to move forward with the next steps in the development process.” 

*This story was corrected to say the Territory 1889 is on the west side of U.S. 93.

Report for America Reporter Hannah Shields can be reached at 406-758-4439 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.