Update: Leaders emerged from today's meeting, saying that the bond size and makeup remains a sticking point. CapitalAlert has more here.

Water -- the issue that never gets solved but never goes away -- is back on the front burner at the Capitol this week. Legislative leaders and Gov. Schwarzenegger are making yet another attempt to strike a deal on new projects to move and store water.

But so far there is no indication that Democrats and Republicans have overcome differences that have stood in the way of compromise for more than three years.

The latest development: Assembly Republicans are seeking to trim several billion dollars from a proposed $12 billion water bond, yet still keep $3 billion for water storage, including dams. That would likely mean less money for upgrades in the Sacramento-San Joaquin Delta.

"There was an awful lot of environmental pork in there, we thought," said Tom Berryhill, R-Modesto.

Yet those changes aren't likely to sit well with Democrats. They have sought a smaller bond, but members with ties to environmentalists aren't likely to go along with a bond with such a high percentage reserved for dams.

There are also unresolved policy issues. Water districts in the north want assurances that they won't lose water rights, for instance. Another sticking point are proposed new powers for the state to monitor groundwater use. Farm groups fear this could lead to new fees on water.

The governor and legislative leaders met yesterday and are meeting again today.

The renewed effort comes just days before Sunday's deadline for Gov. Schwarzenegger to sign bills passed during the year. Lawmakers have grumbled that the governor is threatening to veto the bills unless he gets a water deal.

The governor is "going to consider each bill on its merits but believes the focus should be on water right now," said Schwarzenegger press secretary Aaron McLear. "He wants to get a water deal done before the end of the week."