The Village of Hillsdale, Village of Jonesville, Hillsdale Township and Fayette Township (all part of the Hillsdale Regional Planning Group) were awarded a First Steps service grant to establish a formalized regional group that has the authority to undertake planning, construction and maintenance of a regional non-motorized trail system throughout the community.

After a lengthy process of weighing different options for a formal regional trail organization, local leaders worked together to develop Articles of Incorporation for a Recreation Authority under Michigan's Recreational Authorities Act (Act 321 of 2000).

Update: In the summer of 2010, all four jurisdictions adopted the Articles of Incorporation, formally establishing the "Headwaters Recreation Authority." Local leaders hope to set a date for their first meeting in October.