Authorizes the Secretary of the Interior to construct and test the Lake Meredith Salinity Control Project, New Mexico and Texas, to improve the quality of water to the Canadian River downstream of Ute Reservoir, New Mexico, and entering Lake Meredith, Texas.

Authorizes the Secretary to enter into a contract with the Canadian River Municipal Water Authority of Texas (Authority) for the design and construction management of project facilities by the Bureau of Reclamation and for the payment of construction costs by the Authority. Makes it the responsibility of the Authority to operate and maintain the facilities upon completion of construction and testing.

Requires the Authority to advance all costs of construction of project facilities as the non-Federal contribution. Declares the Federal share to be all project costs for verification, design preparation, and construction management.

Provides for transferring control of the project works to the Authority or to a bona fide entity agreeable to New Mexico and Texas upon completion of construction and testing, or upon termination of activities at the request of the Authority.

Authorizes appropriations.