The Shanghai government will spend US$5.2 billion on environmental protection projects by 2009, starting with the development of a new water supply source this week, the South China Morning Post reported. A reservoir built at the mouth of the Yangtze River will supply clean tap water to Shanghai residents by 2010. Officials said Shanghai's water quality remained stable this year and was unaffected by a recent algal bloom that disrupted water supplies in nearby Wuxi. Other environmental protection projects include new and upgraded sewage plants. The city spent a record US$4 billion, more than 3% of the city's GDP, on environmental protection projects last year.