ANDERSON, Ind. (AP) _ Gov. Mike Pence says he sees merit to the proposal for a reservoir on the White River in central Indiana that could cost $450 million.

Pence tells The Herald Bulletin (http://bit.ly/1Gvqy2c ) the project could help the state's long-term water needs and provide a fresh way of attracting investment and people to the Anderson area.

The proposal has gained support from economic development agencies in the region and the initial backing of the Anderson City Council, but officials in neighboring Delaware County have voted against it.

The 2,100-acre reservoir would be created by damming the White River in Anderson and creating a lake stretching for seven miles in Madison and Delaware counties.

Project opponents say the reservoir isn't needed for water supplies and would damage Mounds State Park.