The seismic vulnerability of the existing outlet tower at Lake Mathews reservoir, located in Riverside County, California, necessitated the design of a new outlet facility to assure serviceability of the facility following a major earthquake. The components of the proposed facility include: a new outlet tower; a shaft; a new outlet tunnel; an approach channel that will be excavated underwater; and two short tunnels that will connect the new outlet tunnel to the existing outlet tunnel via the shaft. As the new facilities will be constructed while the reservoir is in operation, a cofferdam will be constructed around the site of the new outlet tower. The design for the underground facilities used a combination of empirical methods; limit equilibrium analyses, including displacement-based pseudo-static analyses for dynamic loading conditions; and numerical analyses. This paper outlines the design methodology used to develop an innovative design for the facilities which can be constructed within the time frame required by the operational schedule of the reservoir and existing outlet facility.