A bill to authorize the Secretary of the Interior to construct and test the Lake Meredith Salinity Control Project, New Mexico and Texas, and for other purposes.

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. Requires the Authority, upon termination of construction pursuant to this Act, to reimburse the Secretary a sum equal to 67 percent of all costs incurred by the Secretary in project verification, design, and construction management, reduced by any sums previously paid by the Authority to the Secretary for such purposes. States that upon such termination, the United States is under no obligation to complete the project as a nonreimbursable development.

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 and reimbursement of Federal costs pursuant to this Act.

Authorizes appropriations.

Directs the Secretary to inventory all wetlands on Federal lands owned by or withdrawn for the use of the Bureau of Reclamation and other Federal lands associated with reclamation projects. Requires the Secretary, not later than February 1, 1990, to report to specified congressional committees a plan for the implementation of the inventory directive. Requires the Secretary to report the results of such inventory to the Senate Committee on Energy and Natural Resources and the House Committee on Interior and Insular Affairs by December 31, 1991.