To authorize the Chief of Engineers of the Army Corps of Engineers to make capital improvements for the Washington Aqueduct, and for other purposes.

Authorizes the Chief of Engineers of the Army Corps of Engineers to modernize the Washington Aqueduct in the metropolitan Washington, D.C. area. Authorizes appropriations. Authorizes the Chief to enter into contracts with public water supply customers under which the customer repays a pro rata share of the principal and interest of the Corps debt for such modernization. Provides contract conditions and borrowing authority.