DELRAY BEACH, Fla. - The water features industry is feeling the sting of water restrictions being enforced in drought-stricken southern Florida. But a small group of industry members is trying to contain the financial damage by working with state authorities to modify the restrictions.

"It affects a large portion of the business down here," said Terre Higgs, president of Urdl's Waterfall Creations in Delray Beach. "We'll probably lose about $6 million in business revenue, and we've lost about $1 million already."

Higgs and a federation of businessmen calling themselves the Water Feature Task Force met with the South Florida Water Management District Board in hopes of working out a compromise that will conserve water while avoiding disastrous consequences for its industry.

The Task Force was formed by former members of the now-defunct National Water Features Association, including representatives from Freeport Fountains, Cascade Fountains, Architectural Accents, Rock & Water Scapes, and Vertex Fountains.

Currently the state is in a Phase 2 level of water restriction, which doesn't affect water features. But Phase 3, which requires water features to be shut down, could be on its way by spring of 2002, according to Higgs.

"Landscapers and nurserymen met with the South Florida Water Management District Board, and modified Phase 2 restrictions to give them some relief," Higgs said. "Then [the board] held more meetings to see what they could do about modifying Phase 3. They didn't want to have people picketing the Water Management District again."

Higgs noted that a modified Phase 3 would still allow water features, but would place some restrictions on them.