QUILCENE — A few weeks after learning that their hopes for a public water system might be dashed, business owners have new reason to bubble with optimism.

“I think we have momentum,” said Mike Hoskins, a woodworking artist with a gallery on Rodgers Street, after meeting with business owners and government officials Tuesday afternoon.

Hoskins and the others at the meeting based their optimism on news that the state Department of Ecology has softened its stance on installation of a water system.

Not three weeks ago, Ecology officials turned down a request to transfer the water right owned by the U.S. Forest Service at its Quilcene Ranger Station to Jefferson County Public Utility District No. 1.

That right would provide enough water allocation for a pipeline system in Quilcene.

The denial brought angry responses from PUD and county officials, who said Ecology officials didn’t understand the health and economic effects of the decision.