Gov. Roy Romer on Friday reluctantly recommended a permit for a dam that would guarantee a water supply for the growing metropolitan area at the cost of flooding a scenic canyon. ``Colorado should build Two Forks, in my judgment, only as a last resort,'' the governor told a packed news conference at the state Capitol. The proposed Two Forks dam and reservoir southwest of Denver would flood Cheesman Canyon, which Romer would like to see preserved as a state recreational area. ``I am challenging the state to find an alternate solution,'' said Romer, who attached attached several conditions to his recommendation and said he favored building a smaller dam and reservoir at Estabrook. Romer said the Two Forks permit was ``an insurance policy'' for metropolitan Denver to be used only if other water sources and conservation proved insufficient, which he said is unlikely. ``We do not need to sacrifice that canyon in order to have water,'' the governor said. The dam project was proposed by the Denver Water Board and a consortium of 42 metropolitan area water providers and municipalities. Proponents have portrayed the project as crucial to metropolitan growth. They project that the region's population will grow from its present 1.5 million to 2.5 million by 2035, outstripping its supply of water. Environmentalists and sportsmen say the project would needlessly wipe out 20 miles of trout fishing and recreation, and would threaten whooping crane habitat and irrigators along the Platte River in Nebraska. The U.S. Army Corps of Engineers must decide whether to issue a permit, and is accustomed to considering a governor's recommendation as an important factor. At the Corps of Engineers district office in Omaha, Col. Steven G. West said Romer's statement was ``one of great importance in the Corps' decision,'' which he expected in late summer or early fall. The 615-foot-high dam and 300-foot-deep reservoir would be built downstream from the confluence of the South Platte River and its North Fork, about 25 miles southwest of Denver. If permits for the project were issued immediately, it could be ready for use in 1995, providing 98,000 acre-feet of water to the area, officials have said. One acre-foot is about 325,000 gallons. Romer said he would recommend a 25-year shelf life for the project, meaning it could be built anytime during that period. Romer pegged his approval on several conditions, including the creation of a metropolitan-area water conservation program and a Metropolitan Water Authority to plan distribution of water supplies. He also would require a plan to replace lost wildlife habitat and recreational facilities if Two Forks is built. He also said he would seek a full study of his proposal to build a smaller dam and reservoir at Estabrook, about 20 miles west of Two Forks up the North Fork. ``Handing the decision over the Legislature to save the canyon is a cop-out,'' said Carse Pustmueller, Platte River coordinator for the National Audubon Society. ``We're extremely pleased that the governor endorsed the issuance of permits and the 25-year shelf life for Two Forks,'' said Ed Pokorney of the Denver Water Department. Nebraska Gov. Kay Orr said Romer appeared to want to have it both ways. ``Gov. Romer, I think, has been acknowldedged as somebody who is a great compromiser,'' she said. ``But with his statement today, I'd say he is a great fence-straddler.''