To alleviate the extreme flood events that plagued Federalsburg, Marshy Hope Creek was slated for reconstruction in 1969. Managed by the U.S. Army Corps of Engineers, the project included excavation of a large portion of the waterway and floodplain.
 

 
The main channel was dredged, widened and straightened to help reduce flooding. Much of the floodplain vegetation was removed and the dredged channel material was placed on the floodplain. As a result, much of the wetlands along Marshy Hope Creek were filled and destroyed.
 

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