Another legal front has opened in the water dispute pitting American Canyon against Vallejo – this one involving a proposed American Canyon annexation that could help create a parallel road to Highway 29.  American Canyon wants to add the 83-acre Paoli/Watson Lane lands north of the city limits. The City Council took steps in that direction last month.  “I think this is a reasonable annexation,” City Councilmember Mark Joseph said at that Nov. 7 meeting. “It’s been anticipated since 2008.” … But a year-long legal battle continues over how much water Vallejo must supply to American Canyon. Vallejo claims American Canyon is failing to take this into account when calculating water availability for the Paoli/Watson Lane lands.