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To Fix Water Crisis, Brazil Turns to Big Projects

A plan to tap a long-polluted dam to alleviate a punishing water shortage draws fire

SÃO PAULO—As he stood by the dam that is a last hope for this Brazilian megacity to avoid water rationing, marina worker Valdir Mastrocezari saw a problem. He also smelled it.

Baking under the noonday sun, near the drought-exposed shoreline of the massive Billings reservoir, was a foul soup of raw sewage laced with human excrement.

The state government plans to use treated water only from non-polluted parts of the reservoir to...

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