The Trump administration plans to revoke an Obama-era regulation that provided federal protection to many U.S. wetlands and streams.
Two Environmental Protection Agency officials with knowledge of the plan told The Associated Press the administration plans to substitute the rule with its own version.
EPA Administrator Andrew Wheeler and Army for Civil Works Assistant Secretary R.D. James scheduled a news conference for later Thursday to discuss the decision.
President Donald Trump has promised to repeal the 2015 Obama rule, which defines what bodies of water fall under federal jurisdiction.
Farmers, homebuilders and other business interests say the rule has harmed economic development and violates property rights.
Environmentalists say the move would leave millions of Americans with less safe drinking water and damage wetlands that prevent flooding.