Update 5:26 p.m.

Flint needed the state's permission to join the water pipeline project because the city is run by an emergency manager. Supporters say the new pipeline will save Flint money.

Bill Johnson, spokesman for the Detroit Water and Sewerage Department, said the state previously told Detroit water officials they would have more time to reach a new agreement with Flint. He says the Detroit water system stands to lose big if Flint starts getting its water from Lake Huron.

"Detroit will lose 6 to 7 percent of its total revenue base, amounting to something like $22 million. That cost would have to be absorbed by the remaining 3 million Detroit Water and Sewerage Department customers."

Detroit has until Monday afternoon to make one final offer to the city of Flint to keep its water business. Flint’s emergency manager has said he wants to see Detroit’s offer.

12:39 p.m.

FLINT, Mich. (AP) - The state of Michigan has approved Flint's plans to get its water by participating in a pipeline project that would tap Lake Huron.

The Flint Journal reports the approval is subject to review of a final offer from the Detroit Water and Sewerage Department by Monday. State Treasurer Andy Dillon told Flint's state-appointed emergency manager Ed Kurtz of the decision.

Under the proposal, Flint would get 16 million gallons of water per day from Lake Huron, pipe it to Flint for treatment and then sell it to city customers. Another 2 million gallons per day would come from the Flint River and would be treated in Flint.

The Karegnondi Water Authority project could serve Flint and Lapeer as well as residents elsewhere in Genesee, Lapeer and Sanilac counties.