Some good news for all water-based lifeforms in the Atlanta area (that’s you!)…

A panel of judges on Wednesday appeared poised to hand Georgia a victory in the tri-state water case by sending back a ruling that could have catastrophic consequences for the metro region.

Such a victory would include vacating a looming July 2012 deadline that says metro Atlanta would get only a fraction of the water it is now getting from Lake Lanier if Georgia, Alabama and Florida cannot negotiate a water-sharing agreement by then.

During oral arguments, three judges for the 11th U.S. Circuit Court of Appeals appeared inclined to settle the issue by sending the case back to the Army Corps of Engineers, which operates Buford Dam. It would then be up to the corps to figure out how much water from the man-made reservoir can be used to meet metro Atlanta’s needs.